Gateway Real Estate Africa (GREA) will seek to raise more than $200m in equity early in 2021 to help develop its property pipeline, CEO Greg Pearson tells The Africa Report.
GREA’s development pipeline stands at more than $400m, Pearson says from Mauritius. New African data centres will account for more than 30%, with oil and gas, embassies, corporate offices, logistics and light industry also key sectors.
The COVID-19 pandemic has prompted public and private sectors to rely more heavily on data centres to keep essential infrastructure operating. According to Kabir Chal and Funke Okubadejo of the Actis investing firm, African data centre challenges include securing power, real estate and fibre connectivity.
That “may deter international strategic players” from entering on a greenfield basis, increasing the opportunities for investors experienced in developing African real-estate assets, they write.
As well as leading GREA, Pearson is co-founder of the Grit Real Estate Income Group, which trades on the London stock exchange, and in Mauritius. Grit seeks to attract income-seeking investors such as pension funds, while GREA concentrates on higher-risk property development which can provide higher returns, says Pearson. Grit has a 20% stake in privately held GREA, which it hopes will help to increase its net asset value (NAV), adds Pearson.
GREA is operating across Africa, except in South Africa. The company is willing to follow its clients into new countries, adds Pearson. Previous developments include the Anfa Place Shopping Centre in Casablanca, the OBO Ethiopia Corporate Accommodation Tower in Addis Ababa and a Bollore Africa Logistics warehouse in the Pemba port region of northern Mozambique.
Publication: The Africa Report (Published Article)