Africa’s largest lender by market value, FirstRand, is planning to raise 500 million Dollars to invest in real estate across Africa.
The South African financial services provider is targeting prime real estate markets particularly in West and Southern Africa and hopes to raise the money from Swiss, Belgian, Dutch, Scandinavian and Luxembourg investors.
Speaking to Bloomberg, CEO Boshoff Grobler of Ashburton Investments, the asset management arm of Johannesburg based FirstRand, says they will proceed with the investment when FirstRand’s existing US$250 million African property fund is 75% invested early next year.
“Investors are looking for growth in their portfolios. The markets where investors are finding growth has pushed them into Africa,” says Grobler, adding that the planned property fund will offer greater access to developments in Angola, Africa’s second- biggest oil producer, and further grow FirstRand’s footprint in Ghana and Nigeria.