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Industrial Real Estate Development

Industrial Real Estate Development in Africa

Africa’s real estate markets have traditionally lagged developed and many developing, economies but this is changing rapidly. The African continent has the youngest population in the world. Europe is predicted to have a population with an average age of 49 by 2050. In contrast, 70% of sub-Saharan Africans are under the age of 30. An ageing population and declining birth rate present several economic challenges for European countries while the high number of young Africans provides a potential opportunity for the continent’s growth. The proviso is that the pool of young people needs to be empowered to realise their potential. It is especially important that young Africans are given appropriate opportunities for work and to innovate. In Africa, young people face underemployment and lack of opportunities which industrial real estate development and property projects in general help to mitigate.

gateway real estate africaReal estate is an integral part of the emerging market growth phenomenon, and the pace of construction activity is expected to remain high and provide increasing investment opportunities. Private capital will play a key role in funding the growing and changing need for real estate and the infrastructure that supports it. This holds true for industrial real estate development as much as it does for commercial and residential real estate.

Partner of Choice for Industrial Real Estate Development in Africa

Gateway Real Estate Africa (GREA) is the development subsidiary of London and Mauritius listed Grit Real Estate Income Group (“Grit”), focused on the provision of turnkey accommodation for multi-national companies, such as retailers wishing to expand their operations on the African continent. GREA provides direct real estate exposure to qualifying investors, offering high-yielding, US-dollar-denominated rental income streams with robust growth potential.

Whether for industrial real estate development, data centres, healthcare developments, commercial or specialist residential projects, let GREA be your investment partner of choice. GREA is an environmentally sensitive company. Even where resources are limited, GREA believes it’s imperative to follow and promote environmentally responsible business practices. This commitment includes the procurement of construction materials, the use of environmentally friendly processes and the choice of partners that are committed to the same principles. GREA follows an Environmental Management Framework adopted to ensure that the environmental footprint of each project is limited to the greatest possible degree. The framework also allows the company to monitor its adherence to the stated environmental goals.

Why GREA for Industrial Real Estate Development in Africa?

Other than a few specific countries and metropoles, the development of African commercial real estate is in its infancy. Assets in key nodes have predominantly been owner developed or developed for specific multi-national clients. The investment opportunity, for bespoke, turnkey, residential, commercial, and industrial real estate developments in select African countries, was recognised by Greg Pearson and Bronwyn Knight, who co-founded Grit in 2014. Grit has grown into the largest pan-African real estate income group listed on the main market of the London Stock Exchange and the Stock Exchange of Mauritius. Grit currently operates across eight countries, with direct investments in five asset classes and assets valued in the region of USD 800 million. Multinational clients generally want quality real estate solutions that include turnkey development and construction capabilities. GREA was consequently established to fulfil this role. Grit currently holds a 35.01% interest in GREA as well as a 77.95% controlling stake in Africa Property Development Managers, the external manager of GREA, which allows Grit to service the full spectrum of its clients’ real estate requirements.

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