Sanlam to launch African property fund
13 February 2013
South African financial services group Sanlam will launch its sub-Saharan Africa real
estate fund at the end of March to facilitate participation in property markets across the region.
"While the majority of the developed world is struggling to find yield, the African
continent currently has seven of the top 10 growing economies in the world," Sanlam Investments CEO Johan van der Merwe said in a statement on
Monday.
"This creates a unique opportunity for the Sanlam Group to take advantage of its
positioning and provide the investor community with a suite of products that
facilitates participation in these markets."
The real estate fund forms part of Sanlam's growth strategy in Africa and building on its established network in 11 countries across sub-Saharan Africa.
"This fund aims to take advantage of the favourable supply and demand imbalance
for quality real estate across the subcontinent, as well as its
strengthening
demographics and resultant return characteristics," Van der Merwe said.
Sanlam developed the fund as there was a dearth of platforms through which
prospective investors could access the market.
"This fund has been structured to the highest international standard to provide an
acceptable platform for both local and international investors to tap the growth
potential of the Sub-Saharan Africa real estate market," said Sanlam Properties CEO Thomas Reilly.
"It has taken over two years of hard work to finalise and we have been able to
secure a strong pipeline of select assets with attractive returns."
The fund will be listed on the Stock Exchange of Mauritius, and excludes investments in South African property.
"Sanlam expects to grow a portfolio in excess of US$500-million over the medium
term with the bulk of initial investors expected to be sourced from the US and
southern African investor markets," the company
said.
The initial capital-raising process will close on 31 March.
SAinfo reporter
