Johannesburg South Africa GMT +2

"If done well, resource-intensive agri-investments can generate new and higher paying jobs, upgrade the skills of the labour force, facilitate technology transfer, open new and better markets, and generate complementary infrastructure.”
Principles for Responsible Agricultural Investment that respects Rights, Livelihoods and Resources, World Bank Group, 25 January 2010
“Africa will be the economic lion of the 21st century.”
McKinsey: Lions on the Move: The Progress and Potential of African Economies
“South–South cooperation can contribute to the enhancement of Africa’s capacity to deal with development and economic challenges and emerging threats.”
Economic Development in Africa Report 2010 - United Nations Conference on Trade and Development
“Poverty, we are told, is mainly rooted in agriculture, and the productivity of that sector must be increased.”
UNCTAD Economic Development in Africa – 2011
“About half of all trade facilitation reforms in 2009/10 took place in Sub-Saharan Africa.”
Doing Business 2011 – International Finance Corporation
In the long term, Africa's best chance for prosperity and stability is not from dependency on foreign aid, but from sustained private investment and enterprise.
Currently, only about 1% of the private capital in the world is invested in sub-Saharan Africa.
“The continent [Africa] is now growing much more rapidly than the OECD nations. It [Africa] may well be on the cusp of a reversal of fortunes.”
McKinsey: The Case for Investing in Africa
Africa’s GDP has been rising steadily, at around 5 percent a year, for the past decade, reaching $1.6 trillion in 2008. In 2009, Africa was one of just two regions (the other was Asia) where GDP rose.
McKinsey
“The truth of the matter is that when you look at risk-adjusted returns on this continent [Africa], they are significantly better than in most parts of the world over the last decade.”
Maria Ramos – Absa Bank Limited Group Chief Executive
“... the idea of using profit-seeking investment to generate social and environmental good is moving from a periphery of activist investors to the core of mainstream financial institutions.”
Mointor Institute 2008

Article Index
IVORA AFRICA PROPERTY FUND
WHY AFRICA?
NICHE OFFERING OF IAPF
FUND ASSETS
REGIONAL INVESTMENT
CHALLENGES IN AFRICA
EXIT STRATEGY
GEARING
10 REASONS TO INVEST IN IAPF

IVORA AFRICA PROPERTY FUND

The Ivora Africa Property Fund (“IAPF”) is a unique investment company committed to generating attractive, long-term returns through property-based investments in Africa.
The fund invests in real estate located in Africa, supported by long-term leases providing a secure, escalating income stream.
The Fund identifies opportunities that can be established and operated on commercial terms, providing:
Stable long-term returns

Limited competition in investment sectors
Access to property assets not generally available to institutional investors
Positioned to participate in the economic growth regions of Africa
Strong SRI component in terms of job creation, skills development and economic expansion and development

WHY AFRICA?

Population - 1 billion
Annual real GDP growth of 5%+ per annum
Widespread economic growth - 27 countries expanding more rapidly after 2000
Future economic growth will be supported by Africa's increasing ties to the global economy
Africa's economic growth is creating substantial new business opportunities attracting investment from global companies
The rate of return on foreign investment in Africa is higher than in any other developing region
The rise of the African urban consumer will provide further impetus to this trend

NICHE OFFERING OF IAPF

Experience and proven track record - development and investment.
Established relationships with major South African corporates seeking to expand north
Ability to identify, evaluate and develop tailor-made solutions in line with corporate objectives
Development risk will be kept outside the fund - turnkey purchase of developed properties with quality leases
Portfolio build will comprise investment grade properties with corporate leases
Become a landlord for African commercial property
Apply skills in unsophisticated/shallow markets - skills transfer, economic growth, unlock capital for corporate expansion

FUND ASSETS

IAPF will invest in the following real estate sectors:

Retail centres
Office parks
Warehouses and industrial parks
Hotels and tourism related facilities
Development land where superlative returns can be achieved

The fund will focus on the following property fundamentals:

Strong contractual cash flows
Assets and land with potential for fundamental capital appreciation and development opportunities

REGIONAL INVESTMENT

IAPF will invest in projects within the Southern African Development Community (SADC).
As the fund matures, investments will be expanded up the African Development Corridors to include COMESA, West, East and Central Africa.
Property investment will be made in the following demographic nodes:

Capital cities
Ports, harbours and transport routes
Commodity-driven regions
High growth areas (demographic and economic)

CHALLENGES IN AFRICA

IAPF recognises and mitigates the following challenges relating directly to African Investment:

Lack of investment grade stock at market related values
Critical mass
“On the ground” asset and property management
Adequate benchmarking of rentals and valuation yields on a regional basis
Appropriate risk-related investment returns
Proven exit strategy (listing)
Liquidity (properties and equity)
Political and legal framework (land ownership and security issues, tax jurisdiction, development incentives etc.)
Skills (development and retention of skills, availability of “on the ground” skills and supervision)

EXIT STRATEGY

IAPF is a long-term investment fund.
Initially the fund will be unlisted and secondary trade is expected to be limited.
Exit from the investment would be achieved by trading the investment in a secondary market.
Once a suitable size and diversification level has been achieved, it is the intention that IAPF will be listed on one (or more) African and other bourses (estimated 5 to 7 years from initial investment).

GEARING

IAPF will not invest in projects with high levels of financial gearing that will place investors’ funds (and projected returns) at an unreasonable level of risk.
However, where prudent, financial gearing may be applied to enhance equity returns up to a maximum level of 40% of Fund value, provided that market-related coverage and repayment ratios are achieved.
Gearing, if implemented, will be raised and ring fenced on a project-specific basis to avoid undue risk to other fund investments.

10 REASONS TO INVEST IN IAPF

Superior commercial returns
Invested in non-traditional asset class providing diversification of risk
Socially responsible investment aligned with global objectives
Africa: Strong growth experienced and expected giving rise to increased demand for real estate
Africa: Profitable companies that can pay rent
Africa: Increase in infrastructure spending and expansion
Africa: Growing international private investment
Africa: Demographic driver is the strongest in the world
We understand Property!
We understand Africa!