Momentum Global Investment Management has completed the second close of it Momentum Africa Real Estate Fund with a $103 million commitment to the Fund which has raised a total of $150 million.
The money was raised in conjunction with its sister company Eris Property Group and focuses on developing retail, light industrial and commercial real estate developments in Sub Saharan Africa (but outside of South Africa).
The final phase of fund raising is scheduled to conclude in 2016 and reaching an aggregate cap of $250 million.
This successful of the fund has been driven by a direct client demand to capitalize on Africa’s growing need for quality retail, office and industrial real estate.
David Lashbrook, Head of Africa Real Estate at Momentum GIM, said: “Achieving the second close is a meaningful milestone because it gives us a larger war chest to commit to a swelling investment pipeline. We are currently working on the mitigation of key development risks on several projects so they can be presented for approval. We believe that de-risking projects before transferring them into the Fund will help it to achieve the minimum 18 percent return target over its eight year life.”
Warren Schultze, CEO of Eris Property Group, stated: “We are currently reviewing projects in Mauritius, Ghana, Mozambique, Nigeria, Rwanda and Zambia, all of which present tremendous opportunities for our investors and the local communities in which they are based. Our investment pipeline includes more than a dozen projects and we expect to commit funds to at least two of these projects prior to the end of 2015.”
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