British International Investment

Actis Africa Real Estate Fund 3

AfricaCameroonCote d'IvoireEast AfricaKenyaMoroccoNigeriaAfricaCentral AfricaEast AfricaNorth AfricaWest AfricaConstruction & Real estate

The Actis Africa Real Estate Fund 3 (ARE3) is the largest private real estate fund targeting sub-Saharan Africa raised in the market to date.  Its predecessor funds are ARE1 and ARE2. The latter, which closed in 2012, raised $278 million. CDC played an anchor role in both predecessor funds.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

In 2015, CDC committed $65m to ARE3, alongside the IFC and endowments from Africa, Asia, Europe and North America.  The fund has a total size of $506 million. Our investment will support residential, retail, office and industrial developments in the capitals of several sub-Saharan African markets.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

Rapid urbanisation and population growth are boosting the number of people in Africa's cities and driving the demand for real estate, both business and residential. Mixed-use developments have been able to help meet this demand. Our investment will enable the fund manager to support the development of real estate in Kenya, Nigeria, Ivory Coast, Cameroon, Mozambique, Zambia and Ghana. Actis has also created Garden City, a mixed-use urban development in the eastern suburbs of Nairobi, that incorporates office, residential and retail space. It has received LEED building certification for the retail and Green Star rating for the residential portion of the project. Actis also set up a vocational project, to train 120 unskilled workers from IFC of the World Bank Group.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    January 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D57
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa, Central Africa, East Africa, North Africa, West Africa
    Country

    The countries from which we derive the value of our investment. Where value is derived from multiple countries, this is indicated.

    :
    Africa, Cameroon, Cote d'Ivoire, East Africa, Kenya, Morocco, Nigeria
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Construction & Real estate

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    August 2015
    Amount :
    $50m
    Currency of investment :
    USD
    Fund Manager:
    Actis LLP
    Domicile

    The company or investment fund’s place of incorporation.

    :
    England

Related investments made by BII into this fund:

Investment name Commitment Region Sector Start date Status
Investment 02 $15m Africa, Central Africa, East Africa, North Africa, West Africa Construction & Real estate January 2016 Active

Investments made by this fund into companies:

For further information about these companies, visit https://www.act.is/

Investment name Country Region Sector Start date Status
Douala Retail Cameroon Central Africa Construction & Real estate December 2015 Active
Garden City Business Park Kenya East Africa Construction & Real estate July 2015 Active
ImpAct Africa Africa Construction & Real estate September 2017 Active
Itura Nigeria West Africa Construction & Real estate August 2018 Active
Itura – RB Kenya East Africa Construction & Real estate March 2022 Active
Itura SC Morocco Morocco North Africa Construction & Real estate December 2019 Active
Itura-Hornet East Africa Africa Construction & Real estate June 2022 Active
Prism Kenya East Africa Construction & Real estate March 2019 Active
Project Arrow Nigeria West Africa Construction & Real estate February 2017 Exited
Renaissance Plaza Cote d'Ivoire West Africa Construction & Real estate December 2018 Active
Twin Lakes Mall Nigeria West Africa Construction & Real estate July 2015 Active
Washington Nigeria West Africa Construction & Real estate February 2020 Active

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