Over $800 million invested in Africa's real estate market in 2021
Africa’s real estate sector is driving the continent’s economic recovery forward with more than $800 million disclosed deals taking place in 2021 by Africa Property Investment (API) Summit stakeholders, says its host, Kfir Rusin.
“Africa’s real estate investors and developers are forging ahead and building for a new era and we’ve witnessed significant investments into emerging sectors of student and affordable housing, logistics, data centres and others,” Rusin said.
Rusin’s comments come ahead of this year’s free to attend virtual edition of the summit, which will attract more than 500 real estate deal makers from 30 African and international countries from 06-10 September 2021.
Having funded over 40% of the deals listed, Standard Bank has capitalized on its balance sheet, and broad African expertise to finance several eye-catching deals in 2021 across sectors and jurisdictions over the past 12 months.
The most high-profile of these deals have been the $300 million debt refinance deal of Lango Real Estate (formerly Growthpoint Investec Africa) which is currently the largest sub Saharan Africa (SSA) real estate debt deal and the first cross-collaterized funding structure across multiple jurisdictions in SSA.
Additional deals by Standard Bank include a $5.5 million to refinance Africa Logistics Properties (ALP) in Kenya; a $9 million deal in the DRC, as well as the $10 million funding of the Metroplex Mall in Uganda.
According to Standard Bank’s Head of Real Estate Finance, Africa Regions, Niyi Adeleye, these deals are representative of the bank’s sustained commitment to their clients and efforts to building long-lasting relationships in the real estate sector and across the continent.
“In the new era, Standard Bank’s view is that our approach has to be holistic in considering both the market evolution and our client’s aspirations backed by credible considerations for key real estate fundamentals in our markets as they evolve,” says Adeleye.
Adding that Standard Bank will also continue to back client activities for our key clients and evolving sector participants as well as firmly encourage and support ESG themes and activities which are quite critical to our objectives as a market participant.
As Adeleye elaborates, “In this regard, we continue to collaborate, fund deals and follow the sustainable market trends in both the traditional commercial sectors and some of the emerging sectors like student housing, digital themed real estate assets and middle-income residential.”
For the Group CEO of Africa’s largest pan-African real estate operator, Broll Property Group’s Malcolm Horne explains that the rapid changes in the broader real estate market have been accelerated by Covid 19 and are a net positive for the future of the continent.
“We’ve seen how these market pressures have pushed long term patient capital to the forefront and now we are going to see the development of a sustainable and a more investable real estate sector in this new era across the continent.”
As Africa’s leading real estate commercial real estate operator with more than 500 staff outside of South Africa, Broll has positioned its businesses to be at the forefront of this new era, says Horne.