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Momentum Raises $50M For African Real Estate Fund

Momentum Raises $50M For African Real Estate Fund

From FTSE Global Markets

Momentum GIM, in conjunction with Eris Property Group, has successfully closed the first tranche of its African Real Estate Fund with $50m  of institutional, family office and HNW investor capital.

The fund will focus on the development of retail, commercial and light industrial real estate in sub-Saharan Africa outside of South Africa, offering investors access to Africa’s strong economic growth and its emerging consumer.

The fund is aimed at long-term institutional investors and it has a $250m fund raising target for its final close on June 30th this year. The fund, which has a target size of $250m is domiciled in Mauritius. The initial term of the fund is eight years with two one year extensions.

The launch of the Momentum Africa Real Estate Fund is in response to client demand to capitalise on Africa’s growing need for quality retail, office and industrial real estate. This demand is driven by a fast growing population which is rapidly gaining increased spending power and is migrating to urban areas.

“We believe that investing in the development of commercial real estate is an exciting way for investors to support and participate in the rise of the African consumer.  The fund seeks to mitigate the key risks of property development prior to commencing construction and it targets a minimum internal rate of return of 18% in USD net of all fees over its eight year life,” says David Lashbrook, head of Africa Investment Strategies at Momentum GIM.

Read more at FTSE Global Markets