(Ecofin Agency) - Momentum Africa Real Estate Fund (MAREF), a joint-venture between London-based Global Investment Management and South African real estate group Eris Property, annonced the final closing of a $170 million fund which will focus on real estate assets across Africa.

The investment fund whose two main stakeholders are subsidiaries of MMI Holdings, Africa’s third largest insurer listed on the Johannesburg Stock Exchange, was supported by 18 institutionals, pension funds and African family funds. The amount initially aimed was $250 million.

The funds has already invested 23% of the resources secured from its investors, in three projects, mainly in Ghana. Optimally, it targets $40 million worth of projects, with a participation ratio of 60% loans and 40% own capital. It also seeks projects that are likely to generate profits of 18% of investments.

The fund keeps prospecting and hopes to develop new offices and commercial spaces projects, in Tanzania, Uganda and Ghana, again. Its management said it has put on hold projects that were going on in Nigeria, due to dollar shortage in the market.

Idriss Linge