Sh12b Fund based in Kenya to support affordable housing in Sub-Saharan Africa
NAIROBI, Kenya, Mar 5 – A growth markets investor and one of India’s largest real estate company have partnered to launch a new real estate joint-venture platform to meet the demand for affordable and middle-income housing in the sub-Saharan African region, starting with Kenya.
Actis and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates, have committed $120 million (Sh12 billion) to the residential development platform which will capitalize on the demand for quality homes at affordable and competitive price points.
David Morley, Global Head of Real Estate at Actis said the joint venture builds on an ongoing partnership between Actis and Shapoorji Pallonji in India which has delivered thousands of high quality, aspirational homes at affordable prices.
“We are confident that Actis’ investment experience in Africa coupled with Shapoorji Pallonji’s 153 years of experience in construction and real estate development will unlock the significant opportunity,” said Morley.
Actis manages one of the largest real estate private equity fund focused on sub-Saharan Africa.
“There is a huge demand for affordable and middle-income homes and the goal of the joint-venture platform will be to bridge the gap in this market and to exceed customers’ expectations,” said Shapoorji Pallonji Real Estate Chief Executive Venkatesh Gopalkrishnan.
Koome Gikunda, Director at Actis, said there is a notable lack of institutional quality homebuilders with the expertise, capital and consumer trust to truly address the opportunity at scale.
“Actis’ joint venture with Shapoorji Pallonji seeks to remedy this in partnership with our local stakeholders.”