Momentum closes maiden Africa fund short of target

The London-headquartered global investment firm has closed the Momentum Africa Real Estate Fund on $170m.

Momentum Global Investment Management, the London-headquartered global investment firm, has held a final close on its maiden Africa-focused institutional real estate fund on $170 million, short of the $250 million original fundraising target.

A total of 18 investors, including pension funds, institutions and family offices, have committed capital to the fund, according to a company announcement.

Momentum Africa Real Estate Fund (MAREF) was jointly launched in early 2015 by Momentum Global Investment Management and South Africa-headquartered property development group Eris Property Group – both subsidiaries of Africa’s third largest insurer MMI Holdings.

A $250 million target was set for MAREF, to be achieved by end July 2016, according to a statement released at the time of the fund launch.

The final close comes close to eighteen months after the fund corralled $150 million in the second close in August, 2015.

Commenting on the final close, Warren Schultze, chief executive officer of Eris Property Group, said: “We are very pleased with the three commitments that we have made so far and we are particularly encouraged by MAREF’s swelling investment pipeline in Ghana, Mauritius and East Africa.”

Capital raised via MAREF is being invested in a portfolio of commercial real estate developments, including office blocks, shopping malls and warehouses, in sub-Sahara Africa outside of South Africa. An 18 percent net IRR target has been set for the fund that has an eight-year term, with two one year extensions.

Momentum Global Investment Management globally had $5.1 billion under management as of end December last year while Eris Property Group has $953 million in assets under management.