28 September 2017
London
Reporter: Theo Andrew

Pension funds driving investment in West African real estate


Investment into West African real estate is primarily being driven by pension funds, according to Thomas Reilly, head of African real estate at Investec.

Speaking on a panel at the Second West Africa Real Estate Investor Forum, Reilly addressed the issues surrounding the lack of capital in African real estate, despite the pension fund investment.

Reilly said: “Big pension funds are driving investment [into Africa], the middle east as well. It’s been a strategic change, investors have realised that the cycle is at a low point, so it becomes about funding partners … proving that the strategy is very important.”

In the last 12 months, Africa-focused private real estate fundraising totalled $450 million, with two funds closing, which shows a decrease on $850 million raised in 2016 and the exception figure of $3.83 billion, which was raised in 2015.

However, looking forward to 2018, Reilly expects that fundraising “will be up there”.

Another panellist, David Laskbrook, head of Africa real estate at Momentum, said: “US investors are interested, but when investors see the challenges in Africa over the past 18 to 24 months, they tend to back off.”

Reilly added: “Depth of capital in various markets hasn’t been there … by and large it has been a difficult sell. [Investors] are not prepared to come in and write a $30 million cheque, it’s not worth their time.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Standard Chartered boosts CRE team
11 December 2017 | Singapore | Reporter: Stephanie Palmer
Standard Chartered has named Steven Cranwell as global head of commercial real estate for its global banking business
SoftBank and Compass in ‘largest ever’ US real estate tech investment
08 December 2017 | New York | Reporter: Stephanie Palmer
Real estate technology firm Compass has won $450 million in investment from the SoftBank Vision Fund, in what Compass has called the largest ever real estate technology investment deal in US history
Tristan fund makes first foray into Germany
07 December 2017 | Bonn | Reporter: Stephanie Palmer
The CCP 5 long-life fund, a core-plus fund advised by Tristan Capital Partners, has made its first investment in Germany, acquiring an office complex in Bonn for €35 million
JLL develops UK corporate solutions team
07 December 2017 | London | Reporter: Stephanie Palmer
JLL has named Sue Asprey Price as lead director of its corporate solutions business in the UK, with immediate effect
Link Asset Services appointed as real estate fund administrator
06 December 2017 | London | Reporter: Stephanie Palmer
Warehouse REIT, a specialist warehouse investor managed by Tilstone Partners, has selected Link Asset Services for fund administration
Dutch portfolio sold for €200 million
05 December 2017 | Amsterdam | Reporter: Stephanie Palmer
Patrizia Immobilien AG has sold a portfolio of 61 residential properties in the Netherlands, for around €200 million
Allianz tops off bumper 2017 with Broadway acquisition
04 December 2017 | New York | Reporter: Stephanie Palmer
Allianz Real Estate has acquired a 43 percent stake in 1515 Broadway, New York, a class-A building valued at $1.95 billion