After the success of RMB Westport’s first African real estate development fund, which closed in August 2012, the property development and investment group announced the first close of its second fund, the RMB Westport Real Estate Development Fund II, raising just under $250m.
RMB Westport, a joint venture between the FirstRand group and Westport Property Group, will manage the fund, the proceeds of which will be used to invest in real estate developments in sub-Saharan Africa, with a focus on Nigeria, Ghana, Angola and the Ivory Coast.
The developments will be built to meet the growing demand for high-grade retail, industrial and commercial property in these countries.
“Despite a number of macro-economic headwinds in certain of the territories in which we operate, strong long term growth prospects, coupled with favourable demographics, and the pleasing trends of increasing urbanization and consumer spending have all led to high demand for retail, industrial and commercial property space,” says RMB Westport CEO, Simon Fifield.
“ It is a credit to both the capital raising abilities of our joint venture partner, Ashburton Investments (FirstRand’s asset management business), as well as the mature, long-term view adopted by our investor base that we have been able to secure such a substantial amount of capital on the first close.”
The new funds raised will be used to finance the business’s very strong pipeline. To date, Fund II has attracted 8 investors comprising mostly international institutions, although increased interest from South African investors is evidenced by the notable rise in commitments from South Africa, relative to Fund I.
RMB Westport has been involved in the development and management of 11 premium property developments in Africa since 2008, and has a proud track record of delivering on budget and on time.
