Momentum Global Investment Management has raised $150m (€136m) for an institutional real estate fund focused on African markets.

The firm said that the second close of the Momentum Africa Real Estate Fund with sister company Eris Property Group raised $103m, adding to the $47m initially secured.

About 85% of assets raised for the fund have come from African-based pension funds, with the remainder from European family offices and US non-profit orgnaisations.

The final phase of fundraising will end next year, with aggregate commitments capped at $250m.

The Mauritius-based will invest in retail, commercial and light industrial real estate in Sub-Saharan Africa outside South Africa.

Migration to cities and rising populations are, Momentum said, driving economic growth.

David Lashbrook, Momentum’s head of Africa real estate, said the firm is looking at key development risks on “several projects”.

The firm is reviewing projects in Mauritius, Ghana, Mozambique, Nigeria, Rwanda and Zambia, with 12 projects in the pipeline. Funds are expected to be committed to two of the schemes by the end of this year.

Lashbrook said: “We believe that de-risking projects before transferring them to the fund will help it to achieve a minimum 18% return target over its eight-year life.”