Eris and Momentum Allocate over $308m to West African Real Estate Investments
Momentum and Eris Property Group have allocated over $308 million for real estate investments in West Africa during the 1st Quarter of 2016. The Momentum Africa Real Estate Fund, which is targeting an 18% minimum return over its eight-year life, has confirmed that they will be making two investments in Ghana and two investments in Nigeria. The fund intends to focus on the development of retail, commercial and light industrial real estate in sub-Saharan Africa ex. South Africa. In Accra, Ghana they will be investing $88 million in two ±11,000m2 office developments called The Union and 335 Place. In Nigeria, they will be investing $220 million in a large mixed-use development in Abuja called Maitama Malland another mixed-use project within Agbara Industrial Estate in Lagos, Nigeria. Last year, Warren Schultze, CEO of Eris Property Group, the fund’s investment advisers stated that they were reviewing projects in Mauritius, Ghana, Mozambique, Nigeria, Rwanda and Zambia.
AfDB INVESTS IN SHELTER AFRIQUE TO BOOST AFFORDABLE HOUSING IN AFRICA
Shelter Afrique, the Pan-African finance institution has received $8.2 million injections of equity from African Development Bank (AfDB) to help support housing and real estate industry in Africa. According to the statement from African Development Bank, the injection is meant to strengthen its balance sheet and help achieve its objective of providing quality and affordable housing in Africa continent. This marks an important step towards addressing the acute shortage of housing in most African countries while creating jobs and enhancing income in Africa.
Nigeria’s 2016 budget favours Real Estate
The National Assembly, last week, passed the much controversial yet awaited budget. The budget passed by the Senate and the House of Representatives was 17 billion Naira lower than the figure of 6.07 trillion Naira presented by President Muhammadu Buhari to the National Assembly in December. The Ministry of Power, Works and Housing got what seems to be the largest chunk of N433.4b. However, is this really the largest chunk considering that these three Ministries merged together to be manned by one man – Babatunde Raji Fashola, are the major sectors the economy need to move forward?