Momentum Global Investment Management, in conjunction with sister company Eris Property Group, has successfully completed the second close of the Momentum Africa Real Estate Fund.

A further $103m was committed to the Fund which has now raised a total of $150m to date.

The final phase of fund raising is scheduled to conclude in 2016 and aggregate commitments are capped at $250m.

David Lashbrook, Head of Africa Real Estate at Momentum GIM, said: “Achieving the second close is a meaningful milestone because it gives us a larger war chest to commit to a swelling investment pipeline.”

“We are currently working on the mitigation of key development risks on several projects so they can be presented for approval. We believe that de-risking projects before transferring them into the Fund will help it to achieve the minimum 18% return target over its eight year life,” he added.

The Fund focuses on the development of retail, commercial and light industrial real estate in sub-Saharan Africa outside of South Africa and is suitable for long-term institutional investors.

The successful fund raise is in direct response to client demand to capitalize on Africa’s growing need for quality retail, office and industrial real estate.

This need is driven by strong economic growth and an expanding population that is migrating to the cities with increased spending power.

Clients also appear to have taken comfort in investing in this joint venture between a leading African financial institution and a premier Southern African real estate company.

Warren Schultze, CEO of Eris Property Group, said: “We are currently reviewing projects in Mauritius, Ghana, Mozambique, Nigeria, Rwanda and Zambia, all of which present tremendous opportunities for our investors and the local communities in which they are based. Our investment pipeline includes more than a dozen projects and we expect to commit funds to at least two of these projects prior to the end of 2015.”