While the talk is growing on emerging real estate markets in Africa, two companies have stepped up to the plate and are pledging $ 528 million overall investment in innovation.
Actis, based in Nairobi, is one of the largest investors in the world's poorest countries, private equity, announced that it has raised $ 278 million. His fund, Actis Africa Real Estate 2, supports retail and office development in West and South Africa.
First Rand Ltd, based in Johannesburg, previously announced plans to invest proceeds from the exercise of fund raising $ 250 million through African property markets - particularly from Nigeria, Ghana and Angola to the west and south leading. As Actis, First Rand said it will allocate most of their funds in retail and commercial properties to a high degree.
Earlier this year, officials said Actis is looking to invest about $ 300 million annually in Africa, much of it destined for bigger markets such as South Africa.
Paul Fletcher, Senior Partner at Actis, said in a statement that the fund showed a broader investment plan by Actis to build the national infrastructure in emerging markets.
Fletcher said that while African economies are growing quickly, second only to Asia, there is a "lack of sufficient liquidity in the public capital markets in Africa, and investors are increasingly turning to private equity to hit slightly in the economic development of the continent. "
"Sub-Saharan Africa has a population of 800 million people and is the region's rapid urbanization in the world but lack capital often requires real estate development," David Morley, head of real estate at Actis, said in a statement .
"Governments recognize the crucial role of FDI (foreign direct investment) in this regard."
The development of infrastructure is a costly business that most African governments struggling with large budget deficits can not afford, making other more attractive areas for investors, Bloomberg reported.
Actis has over $ 300 million invested in the East African region
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