London — Xterra Capital Advisors, the Mauritius based Real Estate Fund Management company promoting the upcoming Xterra Property Development Fund, has entered into a partnership agreement with Terrestria Real Estate Partners, a subsidiary of Frontier Capital Nigeria (TREP), BGI Ghana, subsidiary of a US based retail development firm (BGI), and Best Western BizTravel Lodges of South Africa (BWBTH).
Under the terms of the agreement, the development companies will participate in the upcoming listing of the Fund in the 4th quarter 2015 on the Mauritian Stock Exchange.
These agreements come on the back of partnerships established with AMS Properties and Hass Consult of Kenya and Hotel Vision, Park Inn in Rwanda in July 2015. With the latest round of partnerships, Xterra Property Development Fund stands as an Africa balanced and diversified Property Fund in terms of geography, asset class and maturity of assets.
The recently added West and Southern Africa portfolio includes large scale mixed use developments, retail parks, new and income earning, commercial properties and upscale hospitality properties. The total value of Equity Capital to be raised by the Fund is $300 million with a further $300 million Debt facility.
Indeed the Fund now plan to invest [28%] of its capital in Nigeria, [19%] in Ghana, [34%] in Kenya, [7%] in Rwanda [4%] in Uganda and [8%] in South Africa. The Fund will also be exposed to all Real Estate Asset classes; Industrial [3%] Office [19 %], Hospitality [28%], Retail [50%].
XPDF will offer a mix of high return greenfield developments [85%] and yielding properties [15%].
“With the successful completion of such a portfolio, the Fund is poised to attract international investors seeking exposure to African Real Estate and its high returns, while achieving a country and asset class diversification.” said Anthony Bonnett, Chief Operating Officer of Xterra Capital Advisors.
“When we embarked on the project of building one of Africa’s first Pan African Real Estate Development Funds for Africa, we made the conscious decision to align the Fund exclusively with the best development firms on the continent. We also made the decision to work with Developers from all key regions of Africa in order to benefit from a strong local knowledge and experience. The agreements with 5 of Africa’s best development companies is the best illustration of the execution of our strategy” stated Wagane Diouf, CEO of Xterra Capital Advisors.
“Fund Mobilization is key to quick turnaround of projects in our region. We have been looking for a partner who has the experience and right skill sets to join force with in various real estates projects in our pipeline. The team at Xterra Capital fits that bill and we are excited to be partnering with them” said Nima Yussuf of First Continent Group (www.firstcontinentgroup.com), a founding shareholder in the Fund Management Company.
“Africa is changing in a way that matches the acceleration of technological advances in communication and airline travel observed globally. Businesses are innovating in line with this growth and people’s lifestyles are changing, driving the need for a new generation of business and lifestyle facilities.
Currently the South African market is predominantly limited to single-use or conventional retail properties. This creates an immense opportunity to satisfy the present and future real estate needs of the twenty first century.