OPIC Board Approves Up To $100 Million For Real Estate Investment Fund For Sub-Saharan Africa
June 20, 2012
(OPIC)
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution,
approved up to $100 million in financing for an investment fund that will
produce quality commercial real estate in sub-Saharan Africa. The region is one
of the fastest-urbanizing areas in the world, but suffers from significant
underinvestment in office space.
The Actis Africa Real Estate Fund 2 LP will invest primarily in greenfield
property developments in high-growth markets in East and West Africa, with a
focus on retail and office sectors, as well as some residential and mixed-use
development. Target countries include Ghana, Kenya, Nigeria, Tanzania, Uganda
and Zambia. The fund has a target capitalization of $250 million.
In many cases, the fund’s investments will produce the first
international-standard retail mall and/or Grade A office building in the
targeted markets.
The fund will benefit from Actis’s practice of taking controlling stakes in its
investments to fully manage the development process and generate returns,
starting from the initial purchase of land rights, then deal structuring, and
finally securing project-level finance.
“The lack of retail and office space in East and West Africa is inhibiting the
growth of businesses in both regions – a problem exacerbated by rapid
urbanization across the continent,” said OPIC President and CEO Elizabeth
Littlefield. “By introducing the expertise and skills necessary to make prime
real estate development for growing businesses commercially sustainable, Actis
will help spur economic growth on the continent.”
Actis was established in 2004 and currently has more than $5 billion in total
assets under management globally and 120 investment professionals in nine
offices, including 33 investment professionals in four offices in Africa.
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