Actis Africa Real Estate Fund 2 LP

Africa Construction and real estate

Actis is a leading investor in growth markets across Africa, Asia and Latin America. Its three separate investment groups focus on energy and infrastructure; real estate; and general sectors, including consumer, education, financial services, healthcare, industrial, manufacturing, and retail.

Actis was formed in 2004 following a restructuring of CDC designed to bring more equity capital into developing countries and the two organisations have a shared history.

The London-based firm has offices across Africa, Asia and Latin America.

Actis Africa Real Estate Fund 2 (ARE2) is a $278 million fund that specialises in greenfield real estate investments. It focuses on retail and office sectors, residential and mixed-use development properties across sub-Saharan Africa

This investment was made under a previous strategy. We disclose information on all our current investments, but narrative information on our pre-2012 investments, when we introduced a new strategy, may be limited.

Our investment

In 2012, CDC committed an additional $75 million as an anchor investment to ARE2 (we had previously committed $50 million to the main fund). Our additional investment was ring-fenced to target certain countries and help achieve specific development impact objectives.  Our investment will support the construction of office and retail properties in key African cities – Accra, Lagos, Abuja, Nairobi, Kampala – as well as developments in some underserved markets.

Expected impact

Urbanisation and population growth is boosting the number of people in Africa's cities and driving the demand for real estate. Lack of capital, however, often constrains real estate development.

Infrastructure development is a capital-intensive business that few African governments, struggling with budget deficits, can afford. Our investment will enable the fund manager to kick start construction across a variety of projects, which will help to develop domestic infrastructure, provide direct and indirect jobs, and wider economic expansion.

The fund manager has already facilitated developments in Kenya, Ghana, Nigeria and Zambia. These include Ghana’s first green office building, One Airport Square in Accra, and Garden City in Nairobi, a mixed-use development anchored by the biggest regional shopping mall in East Africa. Actis has also made investments in newer markets such as Lusaka and Maputo.

Environmental and social aspects

The fund manager has a well-established approach to environmental and social (E&S) management and we will continue to support and monitor its approach as the portfolio grows.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Ghana, Kenya, Mozambique, Nigeria, Zambia
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Construction and real estate
Website:
https://www.act.is/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Actis LLP
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
May 2011
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$125m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
United Kingdom

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Laurus Development Partners Limited

Laurus Development Partners provides real estate development management services to both Actis and other real estate promoters and investors in West Africa.

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Ghana Africa, West Africa Construction and real estate June 2011 Active
One Airport Square

Development of a 9 storey A-grade office tower, and ground floor retail in the growing office node of Airport City in Accra. The property is expected to be the first green-rated building in Ghana.

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Ghana Africa, West Africa Construction and real estate June 2011 Active
Heritage Place

Heritage Place is a greenfield development of a 15 floor A-grade office tower in a prime location within the commercial zone of Ikoyi, Lagos. The building will offer international standard office space and services in a market characterised by the low quality of the existing office stock.

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Nigeria Africa, West Africa Construction and real estate September 2011 Active
Garden City

Nairobi’s Garden City is a $540 million phased project comprising one of the largest mixed-use real estate developments in Africa. With over 400 residential units, and 33,500 square metres of retail space spread across three floors, Garden City Mall officially opened its doors in September 2015. Investment firm Actis brought together a consortium of local and international experts to deliver the development. The firm is a leading investor in growth markets across Africa, Asia and Latin America. Actis was formed in 2004 following a restructuring of CDC designed to bring more equity capital into developing countries and the two organisations have a shared history.

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Kenya Africa, East Africa Construction and real estate December 2011 Active
Jabi Lake Mall

Jabi Lake Mall is the development of a destination shopping mall on Jabi Lake, a waterfront site in Abuja. The project comprises 26,645m² net rentable area and is part of a wider mixed-use development.

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Nigeria Africa, West Africa Construction and real estate November 2012 Active
The Exchange (formerly Project Sunrise)

The Exchange is developing a 70,000m² of mixed-use office, hotel, residential and retail precinct with 1,350 parking spaces on a 7 acre site in Accra.

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Ghana Africa, West Africa Construction and real estate November 2012 Active
York Commercial Park

York Commercial Park is a 45ha land parcel acquired to create an A-grade logistics, warehousing and light industrial commercial park.

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Zambia Africa, East Africa Construction and real estate September 2013 Active
Baía Mall (formerly RaceGame)

RaceGame is a project to develop an A-Grade shopping centre. The retail development will be on 6ha of land in an excellent location in Maputo, Mozambique.

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Mozambique Africa, East Africa Construction and real estate May 2016 Active