July 15, 2016

Novare Africa Property Fund II closes with $350 million for investment

Dolapo Omidire

Novare Africa Property Fund II, has announced its final close at the end of June 2016 after raising $350 million (R5.25 billion) for investment in a portfolio of new developments in Nigeria, Zambia and Mozambique in among others.

The fund will be listed on the Mauritius Stock Exchange at the end of July 2016 and it is managed by Novare Fund Manager in Mauritius, while Novare Equity Partners provides a sub-advisory role, being tasked with sourcing of potential new development opportunities.

Projects this fund is invested in include:

  • The 22 000m2 Novare Lekki Mall in Lagos, which opens in August 2016, at a total project cost of $83 million (R1.245 billion). At 22,000sqm the mall will be the same size as Ikeja City Mall and the largest on the ‘Island’ region of Lagos.
  • According to Novare, the construction has also commenced at Novare Gateway Mall in Abuja.
  • Bulk earthworks at Novare Central, the mixed use centre consisting of retail space and Grade A offices, also in Abuja, have also been completed and construction is due to start soon.
  • Similarly, bulk earthworks have been completed at Novare Matola mall in Maputo, Mozambique, and construction has commenced. The mall is scheduled to open in the fourth quarter of 2017.
  • Finally land for the Novare Great North in Lusaka, Zambia, has been acquired to develop a shopping centre that is due to open in the Q1:2018.

Derrick Roper, chief executive of Novare Equity Partners said that while uncertainty and volatility had clouded the investment outlook for the continent, Novare’s Africa Property Fund will benefit in the longer term from positive demographics, urbanisation and growing personal incomes.

“The retail sector remains among the most under-penetrated, with significant potential for investors. Facilities for retailers to operate from, as well as to support their logistical operations, remain scarce,” said Roper.

The approach of Novare is to work in partnership with leading South African and international retailers expanding in sub-Saharan Africa. Novare is a seasoned operator in African markets north of South Africa, having operated in the region since 2007.

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