Real Estate Investor Magazine South Africa March 2013 | Page 56

STANLIB

ADVERTORIAL

STANLIB
Africa Direct Property Fund
to be launched
W
ith the retail sector in Africa
growing, its development has
opened up oppor tunities for
institutional investors who buy into the ‘Africa
Growth Story’.
Retail developments present an exciting
prospect for property developers in Africa,
says Amelia Beattie, CIO of STANLIB Direct
Proper ty Investments. The investment
opportunity lies in formalising a sector that
is largely informal – to the tune of 70% of
overall spend. Research shows that of every
household, an average of 29% is spent on food
and 10% on apparel. Converting this spend –
from informal to formal – could revolutionise the
sector over time.
The soon to be launched STANLIB Africa
Direct Property Development Fund will invest
in core commercial real estate developments
in Nigeria and Kenya and offer institutional
investors exposure to top quality assets that
will be created. Retail developments will be a
key focus. The proposed Fund has earmarked
up to 8 developments over the next 8 years,
depending on their size and feasibility, as both
countries have compelling growth potential,
says Beattie.
No two African countries are identical, and
consumer spending habits differ vastly
from country to country. Understanding
idiosyncrasies, catering to them, and ultimately
capitalising on them, is what is needed
to unlock value for investors. This is why
partnerships are so important.
“The Fund will be aligned to partners that are

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February 2013 SA Real Estate INVESTOR

never more than one step removed from the land,
which ensures they have actual rights to the land.
Our aim is to jointly own the development through
the development period so that everyone pulls
together to make the project a success. We believe
it is our duty to give back to the industry and to the
continent by assisting our partners to grow their
businesses while we grow ours. This concept of true
partnership in Africa is really important.”
Partners with in-country capabilities make it easier
to adequately deploy resources and maximise return
on investment. $50m seed capital has already been
committed to the Fund. Ensuring the appropriate
deployment of capital is essential and Beattie
is confident of this, owing to a robust pipeline of
projects.
“Some of these are in the final stages of due
diligence, some are ready to go into the ground and
some are still in the design phase. There are good

schemes that will really make a difference in the
communities they will serve”, said Beattie.
As with any