Standard Bank funding model aids Growthpoint Investec African Properties expansion

A funding solution from Standard Bank’s Real Estate
Financing division has helped Growthpoint Investec African Properties Limited
(GIAP) expand its sub-Saharan footprint, following the acquisition of
properties from the RMB Westport Fund I (RMBW).

Standard
Bank acted as Mandated Lead Arranger, underwriter and coordinator and agency
functions with transactional banking solutions to follow.

Historically,
property acquisition in sub-Saharan Africa has been on a bilateral single asset
deal basis, and GIAP recently concluded transactions with AttAfrica for the
acquisition of Manda Hill in Lusaka, Zambia, and Achimota Mall in Accra, Ghana.
Subsequently, the Group was then presented with the opportunity to acquire a nine-asset
portfolio in West and Central Africa from RMBW.

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Having
only completed its fund raising in March 2018 and strategically timing its
deployment of capital to fund its first two acquisitions in June and July of
2019, GIAP needed a financing solution that would provide the liquidity needed
to complete the full acquisition of the RMBW portfolio ahead of any future
fundraising exercises within agreed transaction timelines.

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Following
a competitive bid, Standard Bank was able to create a suitable funding
structure and adequate liquidity to complete the acquisition, strategically
providing funding of US$50million on an equity bridging basis, along with the
balance of the fund equity to successfully close the transaction.

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Discussions
started in the early part of 2019 and …read more

Source:: MediaCraft

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