Investec Asset Management and South African REIT Growthpoint Properties have entered into a pan-African joint venture.
The companies said they joined the International Finance Corporation (IFC) to create a platform to invest across the continent.
For Growthpoint, the move is its first into real estate beyond its domestic market.
Growthpoint committed $50m (€46.5m) to the vehicle, targeting $500m from institutional investors, while IFC invested $40m.
The vehicle – led by Thomas Reilly, former chief executive at Sanlam’s Africa property fund business – will target Namibia, Botswana, Mozambique, Zambia, Uganda, Tanzania, Kenya, Nigeria, Ghana and Morocco.
Approximately 80% of the venture’s assets will be income-producing, with the remainder earmarked for development to create new assets for its portfolio.
It will invest across the retail, office, industrial and hospitality sectors.
John Green, head of Investec’s global client group, said: “The African real estate markets are well positioned for a long-term growth phase given the significant supply deficit across the continent.”
Growthpoint Properties chief executive, Norbert Sasse, added: “This development has been in the making for some time. It needed the right partners and expertise to create a powerful platform for pan-African property investment.
“This model represents a compelling investment opportunity for Growthpoint in African real estate markets. This undertaking allows Growthpoint to further diversify its assets and harness opportunities across the African continent to seek value for our stakeholders.”