A growth markets investor Actis and one of India’s largest real estate company Shapoorji Pallonji have partnered to launch a new real estate joint-venture platform.
The move seeks to meet the demand for affordable housing in the sub-Saharan African region, starting with Kenya.
The firms have committed $120 million to the residential development platform which will capitalize on the demand for quality homes at affordable and competitive price points.
“There is a huge demand for affordable and middle-income homes and the goal of the joint-venture platform will be to bridge the gap in this market and to exceed customers’ expectations,”Venkatesh Gopalkrishnan CEO of Shapoorji Pallonji.
On his part David Morley, Global Head of Real Estate at Actis said: “The joint venture builds on an ongoing partnership between Actis and Shapoorji Pallonji in India which has delivered thousands of high quality, aspirational homes at affordable prices.”
He added, “We are confident that Actis’ investment experience in Africa coupled with Shapoorji Pallonji’s 153 years of experience in construction and real estate development will unlock the significant opportunity.
In a number of African markets, however, delivery is highly fragmented. There is a notable lack of institutional quality homebuilders with the expertise, capital and consumer trust to truly address the opportunity at scale.
“Actis’ joint venture with Shapoorji Pallonji seeks to remedy this in partnership with our local stakeholders,” noted Koome Gikunda Koome Gikunda, Director at Actis.