Offering

Africa

Given rising consumer spending by the increasing affluent middle class in sub-Saharan Africa, the need for modern retail facilities is far greater than the current supply.  Novare's experience and risk mitigating strategies in Africa assist in identifying and implementing sound development opportunities, and in navigating the renowned challenging landscape.

I N V E S T M E N T  R A T I O N A L E

Globally, the pace of urbanisation is increasing.  It is predicted that by 2030, 59% of the world's population will live in cities.  For developing countries, this number is 55%, an increase of just under 10 percentage points from current levels.  The UN states that over 90% of urbanisation will occur in developing countries.

In 1980, only 28% of Africa’s population lived in cities, rising to 40% in 2010. There are 52 African cities with a population of more than a million, equaling Europe, and surpassing India which has 48.

Modern retail facilities in urban areas are few and far between in sub-Saharan Africa. In the US in 2010 there were 2.5 m² per capita of modern retail space. The corresponding figure for Europe was 1.5. For Zambia it was 0.0029 and for Nigeria, with its massive potential market, 0.0005.

The continent’s rising middle class is increasingly demanding improved retail experiences. The rise of mobile technology has had a visible impact on African consumers. Local and international news, social media and awareness of products and services available outside of the continent have contributed to the emergence of a savvy middle-class of consumers eager for higher quality products.

O U R  O F F E R I N G

Novare launched its first fund, the Novare Africa Property Fund I in July 2010, funded predominantly by South African pension funds. The fund’s characteristics made it a perfect fit given the longer term horizon, as well as above-average returns these investors need. The $81 million raised reflected demand to participate in the African growth story. The additional 5% that the South African Reserve Bank allows South African pension funds to take up in African investments outside of their borders, has assisted in realising portfolio diversification benefits.

The Novare Africa Property Fund II had its first close at 30 June 2014. It was launched due to continued demand investors demonstrated for opportunities managed by reputable and knowledgeable professionals on the sub-continent. The fund closed on 30 June 2016 and raised $351 million. Both funds target returns in excess of 25% net of fees, and are domiciled in Mauritius as well as listed on the Mauritian Stock Exchange.

The Novare Africa Property Fund I made its first investment in the successful Novare Apo mall, the first of its kind in the capital of Nigeria and which changed the retail landscape of this prosperous city almost overnight. Shoprite is the anchor tenant, alongside prominent brands like KFC, Mr Price, MTN, LG, Adidas and Samsung.

www.novare-apo.com

Further allocations were made to developments across the rest of Africa. The Novare Lekki mall development in Lagos opened in August 2016. With both Shoprite and Game as anchor tenants, it is the biggest mall in Lagos. 

www.novare-lekki.com

Additional investments that the fund is committed to include the Novare Gateway mall in Abuja with Shoprite confirmed as an anchor tenant.

www.novare-gateway.com

The Novare Central office park in Abuja located in the heart of Abuja’s CBD across from the new High Court, and is a mix-use development consisting of retail and commercial space.

www.novare-central.com

The Novare Matola mall development is located on the busy EN4 highway that connects Maputo (Mozambique) to Nelspruit (South Africa). It falls within Matola, a historically industrial area of Maputo, the most populous city in Mozambique and has developed to become a strong mid income residential node and suburb of Maputo. The retail development will be anchored by Premier Superspar.

www.novare-matola.com

Novare's first foray into Zambia is the Novare Great North mall located along the bustling Great North Road of Lusaka. Situated close to the famous Heroes Stadium, Novare Great North will cater to a previously underserved region of Lusaka, helping to relieve the heavy inner city traffic pressure.

www.novare-greatnorth.com