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CDC Invests $100M in New Africa Fund

JOHANNESBURG-The new Africa real estate fund intends to develop shops and offices to meet a growing demand from international tenants.

By Anita Howarth | Updated on August 31, 2006

JOHANNESBURG-Private equity investor group CDC, which is backed by the UK government and focuses on emerging markets, has invested $100 million in a new African real estate fund, Actis Real Estate Fund.

The fund aims to invest in office and retail properties in sub-Saharan Africa to meet demand for offices from foreign direct investment and for shops from South Africa’s expanding retailers.

The fund is the first “dedicated real estate fund” in which the CDC has invested. CDC used to be called the Commonwealth Development Corp. but it has been renamed the British Development Finance Institution. CDC CEO Richard Laing says that the shareholder, the UK government, requires that about 50% of its funds available are invested in sub-Saharan Africa and southeast Asia. Funds are not invested directly, instead they are invested in private equity funds which invest in emerging markets.CDC has been investing in property for the past six to 10 years and as a result they identified a demand from South African national retailers like Shoprite who are looking to expand north but are struggling to find suitable units for shops and offices.

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