Thursday, March 28, 2024 UTC

Recognized by industry leaders for extensive coverage on African Asset Management

News > Private Equity > Fundraising

Novare Africa Property Fund II raises $350m at final close

Africa Global Funds
July 15, 2016, midnight
587

Word count: 445

Novare Africa Property Fund II, has announced its final close, raising $350m (R5.25bn) for investment in a portfolio of new developments in, amongst others, Nigeria, Zambia and Mozambique.

Choose ONE Magazine and TWO Articles for FREE when you register an account
Share:

Novare Africa Property Fund II, has announced its final close, raising $350m (R5.25bn) for investment in a portfolio of new developments in, amongst others, Nigeria, Zambia and Mozambique.

The Fund, which will be listed on the Mauritius Stock Exchange at the end of July 2016, has a mandate to invest in retail and commercial real estate in sub-Saharan Africa outside of South Africa.

The Fund is managed by Novare Fund Manager in Mauritius, while Novare Equity Partners provides a sub-advisory role, being tasked with sourcing of potential new development opportunities.

Derrick Roper, CEO of Novare Equity Partners said that while uncertainty and volatility had clouded the investment outlook for the continent, Novare’s Africa Property Fund will benefit in the longer term from positive demographics, urbanization and growing personal incomes.

“The retail sector remains among the most under-penetrated, with significant potential for investors. Facilities for retailers to operate from, as well as to support their logistical operations, remain scarce,” he said.

The approach of Novare is to work in partnership with leading South African and international retailers expanding in sub-Saharan Africa.

Novare is a seasoned operator in African markets north of South Africa, having operated in the region since 2007.

Novare launched its first fund, the $81m (R1.215bn) Novare Africa Property Fund I, in July 2010.

The Novare Africa Property Fund II had its first close at the end of June 2014 and has since attracted additional commitments to achieve a target of $350m (R5.25bn).

The Fund II has already invested in various projects, with a strong pipeline awaiting capital deployment as well.

Projects the fund has invested in to date include Novare Lekki mall in Lagos, which opens on August 25, 2016, at a total project cost of $83m (R1.245 billion) and will be the largest mall in Nigeria’s most populous city.

Construction has commenced at Novare Gateway mall in Abuja, where it will be the first building of stature most visitors experience when arriving in Nigeria’s capital city on the expressway from the airport.

With bulk earthworks completed at Novare Central, also in Abuja, construction is due to start on this mixed use center consisting of retail space and A-grade offices.

Bulk earthworks have been completed at Novare Matola mall in Maputo, Mozambique, and construction has commenced.

The mall is scheduled to open in the fourth quarter of 2017.

At Novare Great North in Lusaka, Zambia, land has been acquired for the shopping center due to open in the first quarter of 2018.

“The continent’s challenges have tended to over-shadow its longer term potential, and we believe that this stage of the economic cycle presents significant opportunities for superior future investment returns,” Roper said.

Registration Login
Sign in with social account
or
Lost your Password?
Registration Login
Sign in with social account
or
Registration Login
Registration