A London based equity firm, Actis, recently announced that it has raised $500m for its third opportunistic private real estate fund, the Actis Africa Real Estate Fund 3 (ARE3). This amount exceeds its original target of $400m.

“We are delighted that investors have chosen to recognize our track record by committing their capital to our third real estate fund, and we look forward to continuing our contribution to the development of cities across Africa,” said Torbjorn Caesar, Senior Partner at Actis.

Africa has been affected by several economic issues such as the fall in oil prices and the price of commodities due to China’s economic slowdown. Earlier in May, the International Monetary Fund cut its 2016 growth forecast for sub-Saharan Africa from 4.3 percent to 3 percent. This is the lowest growth forecast in 15 years and half of the total average over the last decade.

Despite the poor economic situation in Africa, investors are still interested in specific sectors and countries within the continent. Unfortunately, these countries do not include Nigeria because of the current stringent monetary policies put in place by the government.

ARE3 is one of the largest private real estate funds targeting sub-Saharan Africa to date. It has a diverse investor base, including pension funds, sovereign wealth funds, development finance institutions and endowments from Africa, Asia, Europe and North America. This new fund is larger than the Actis Africa Real Estate Fund 2, which closed in October 2012 with commitments of $278 million. ARE3 will invest mainly in prime retail and office and industrial developments in about eight capital cities across sub-Saharan Africa.

“With this new vehicle, they will satisfy part of the demand for institutional quality real estate in some of the fastest growing cities globally,” said David Morley, the Team Leader.

Here is what you didn’t know about Actis

• Over the past decade, Actis has invested in assets valued at $1.4 billion on a gross asset value basis.
• In 2014, Actis sold part of its share in Ugandan power utility, Umeme, to institutional and retail investors, reducing its stake from 60.08 percent to 14.3 percent.
• In 2015, it sold its 30 percent stake in Globeleq Africa, the energy company that owns the 75 megawatt, Kenyan-based thermal power generator, Tsavo Power, to CDC and Norwegian development financier, Norfund. This deal was worth $227 million.
• In November 2015, Actis bought a majority stake in Nigerian fund manager, Sigma Pensions, for $62 million. It also invested $65 million in South Africa’s leading independent sports and lifestyle shoe retailer, Tekkie Town.
• It has invested heavily in several business sectors in Nigeria, which earned it an award in 2014 as the ‘Firm of the Year in Africa’ by Private Equity International as well as an ‘African Infrastructure Fund Manager of the Year, 2014’ by Infrastructure Investor.