Actis Africa Real Estate Fund 3

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.

The Actis Africa Real Estate Fund 3 (ARE3) is the largest private real estate fund targeting sub-Saharan Africa raised in the market to date.  Its predecessor funds are ARE1 and ARE2. The latter, which closed in 2012, raised $278 million. CDC played an anchor role in both predecessor funds.

Our investment

In 2015, CDC committed $65m to ARE3, alongside the IFC and endowments from Africa, Asia, Europe and North America.  The fund has a total size of $506 million. Our investment will support residential, retail, office and industrial developments in the capitals of several sub-Saharan African markets.

Expected impact

Rapid urbanisation and population growth are boosting the number of people in Africa's cities and driving the demand for real estate, both business and residential. Mixed-use developments have been able to help meet this demand. Our investment will enable the fund manager to support the development of real estate in Kenya, Nigeria, Ivory Coast, Cameroon, Mozambique, Zambia and Ghana. Actis has also created Garden City, a mixed-use urban development in the eastern suburbs of Nairobi, that incorporates office, residential and retail space. It has received LEED building certification for the retail and Green Star rating for the residential portion of the project. Actis also set up a vocational project, to train 120 unskilled workers from IFC of the World Bank Group.

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.

:
Cameroon, Kenya, Nigeria
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

:
August 2015
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.

:
$50m
Domicile

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

:
England

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Twin Lakes Mall

Twin Lakes Mall is a greenfield development of a regional shopping mall along the Lekki-Epe Expressway in Eastern Lagos. The area is considered to be one of the fastest growing residential/commercial areas in Lagos and benefits from recently improved road infrastructure.

View investment details

Nigeria Africa, West Africa Construction and real estate July 2015 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.

View investment details

Kenya Africa, East Africa Construction and real estate July 2015 Active
Douala Retail

Douala Retail will be a retail led, mixed-use development in the airport area of Douala.

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Cameroon Africa, Central Africa Construction and real estate December 2015 Active
Project Arrow

This is a proposed land development in Nigeria.

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Nigeria Africa, West Africa Construction and real estate February 2017 Active
ImpAct Africa Construction and real estate September 2017 Active