Africa’s Largest Pension Fund Backs Grit Real Estate’s $100M Raise
TLDR
- PIC invests $48.5 million in Grit Real Estate Income Group's GREA unit to reduce high-cost debt and fund development projects with yields exceeding 10%
- GREA focuses on property development outside South Africa in defensive sectors like healthcare, light industrial, diplomatic housing, and data centers
- GREA plans to exit mature assets, including large-format malls and minority-owned properties, to streamline its portfolio
The Public Investment Corp. (PIC), Africa’s largest pension fund, is supporting Grit Real Estate Income Group’s $100 million capital raise for its Gateway Real Estate Africa (GREA) unit. The PIC is injecting $48.5 million into the London-listed company to help reduce high-cost debt and fund development projects with yields exceeding 10%, GREA CEO Greg Pearson said.
GREA, which focuses on property development outside South Africa, is targeting defensive sectors such as healthcare, light industrial, diplomatic housing, business-process outsourcing centers, and data centers.
Current developments include projects in East Africa and potential opportunities in West Africa. GREA’s leases are primarily denominated in hard currencies like the dollar and euro, serving multinational tenants. As part of its strategy, GREA plans to exit mature assets, including large-format malls and minority-owned properties, to streamline its portfolio.
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Key Takeaways
PIC’s backing highlights the growing focus on infrastructure in Africa, where population growth drives demand for quality real estate. GREA’s emphasis on higher-yielding, risk-mitigated developments aligns with investor priorities, while its diversified portfolio supports sustainable returns in a challenging market. The partnership underscores opportunities for long-term growth in Africa’s real estate sector.
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