Growthpoint Properties, South Africa’s biggest real-estate investment trust, agreed to a joint venture with Investec Asset Management to expand on the continent outside of its home market.
Growthpoint will have a 50% stake in the new vehicle and make an initial investment of $50 million, while the International Finance Corporation, an arm of the World Bank, will contribute $40 million, Johannesburg-based Growthpoint said in an e-mailed statement on Tuesday. The partners will seek to raise a further $410 million from institutional investors and will look at listing the business on a stock exchange in the next five to seven years.
The new business will target investments in countries including Namibia, Botswana, Zambia and Kenya, with about 80% of the real estate portfolio to be income-producing assets and the balance to be earmarked for new development, Growthpoint said.
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