African real estate is an area of focus where the commercial property development is significantly derisked by multi-national tenancy agreements and inflation-adjusted, USD rental income. With our partners in Africa, we fund the development of new shopping malls, primarily in capital cities.
We have successfully funded five shopping malls in major African cities since 2011 through our Novare African Property Fund 1, with a total investment of US$81.1 million. Our first shopping mall, the 8,267m the Grand Towers Abuja Mall, opened in June 2012 with Shoprite as the anchor tenant.
The fund combines a highly skilled fund management and property development team of Novare Equity Partners. It employs a pragmatic capital structure, to offer healthy returns on capital for financiers and investors on exit, either through an African REITs listing or independent property sales to institutions looking for a steady long term cash flow stream.
Novare Holdings is one of South Africa’s leading independent financial services group. Established by two former actuaries from Sanlam, the firm has become one of the great success stories of the post-apartheid era in South Africa.