IFC, a member of the World Bank Group, has invested $40m in Growthpoint Investec African Properties, a property investment holding company led by Investec Asset Management and Growthpoint Properties.

Oumar Seydi, IFC Director for Eastern and Southern Africa, said: “As Africa grows it will require improved properties and large-scale developments that can be used by productive businesses and meet increasing consumer demand. We are confident that Investec Asset Management and Growthpoint Properties provide the right combination to successfully create a robust portfolio of property investments across Africa.”

Africa’s property infrastructure is in early stages of development, yet rapid urbanization, business development, and substantially increasing consumer demand on the Continent is growing the need for a wide range of high quality properties throughout the region.

Growthpoint Investec African Properties will invest in income-producing commercial real estate assets in Sub-Saharan Africa.

Well-funded commercial property development will generate critical facilities for businesses and consumers that provide a foundation for continued rapid growth in Africa.

Commercial real estate assets targeted for investment include top-quality office space, retail and industrial or logistics properties, especially in the region’s largest and fastest growing economies.

John Green, Head, Global Client Group at Investec Asset Management, said: “We welcome IFC’s equity partnership at this time as an endorsement of our view that the African real estate markets are well positioned for a long-term growth phase given the significant supply deficit across the Continent. Investec’s pan-African investment experience, Growthpoint’s industry-leading property investment expertise, and IFC’s deep African knowledge create an excellent formula for success.”

The joint venture was announced in November 2015.

Growthpoint, South Africa’s biggest real-estate investment trust, invested $50m in the JV, in which it has 50% stake.

With the investment from IFC, the partners will seek to raise a further $410m from institutional investors.

Norbert Sasse, CEO of Growthpoint Properties, said: “With the full commitment of our partners we are creating a powerful platform for pan-African property investment. This venture with Investec Asset Management and IFC will encourage significant real estate business across Africa.”