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Novare was founded in South Africa in October 2000 as an independent investment advisory business. In 2006, the management of Novare took a strategic decision to expand beyond the borders of South Africa. Novare Equity Partners was established as a private equity firm investing exclusively in sub-Saharan Africa outside of South Africa.
Since then, the group has built an extensive network and gained valuable experience and insight into investing on the African continent, increasingly regarded as an investment destination of choice.
As a private equity fund manager with a specific mandate to invest in the real estate sector, both retail and commercial, our strategy is to leverage off the expansion of successful South African and international companies in the rest of Africa.
Given rising consumer spending by the increasingly affluent middle class insub-Saharan Africa, the need for modern retail facilities far outstrips the current supply. Novare’s experience and risk mitigating strategies in Africa assist in identifying and implementing sound development opportunities as well as navigating the renowned challenging landscape.
The acquisition of strategically located urban real estate is integral to Novare’s investment process. By partnering with the largest and most successful retail companies in Africa as tenants, we are able to deliver superior investments to the market. We deal with premier financial institutions, high-end project and property management as well as construction companies to mitigate construction and development risks.
C O M P A N Y C O M P A N Y O R G A N O G R A M
Zwide Capital (BEE) (26%)Founding Shareholders (74%)
h o l d i n g s
EST. 2017 (100%)South African privatereal estate fund manager
r e a l e s t a t e s o u t h a f r i c a
EST. 2000 (100%)Independent investment consultantAUM R148.9billion
a c t u a r i e s & c o n s u l t a n t s
EST. 2016 (95%)Multi-managerAUM R13billion
i n v e s t m e n t s e r v i c e s
EST. 2009 (94.7%)African private real estate fund managerAUM $432million
e q u i t y p a r t n e r s
INVESTED 2013 (41%)Boutique asset managerAUM R4.5billion
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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. As at the end of 2013, the whole SSA’s modern retail mall stock (excluding South Africa) totalled 0.5 mil m² whilst South Africa had a total of 21mil m². This is with a population 16 times bigger than South Africa, and an economy almost threetimes the size of South Africa.
The continent’s rising middle class is increasingly demanding improved retailexperiences. 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.
Novare launched its first Fund, the Novare Africa Property Fund I in July 2010, raising $81 million predominantly from 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. Strong demand to participate in the African growth story as well as the additional portfolio diversification benefits via the 5% that the South African Reserve Bank allows South African Pension Funds to take up in African investments outside of their borders also assisted in creating the strong demand.
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 development of the Novare Apo mall (opened June 2012), 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
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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 Nigeria’s commercial capital.
www.novare- lekki .com
Additional investments include the Novare Gateway centre in Abuja. With Shoprite as the anchor tenant, Novare Gateway opened in November 2017. This is also the group’s largest project so far in Nigeria and includes a second phase that will in future result in significant expansion of the mall.
www.novare-gateway.com
Located in the heart of Abuja’s CBD in the mature Wuse area, which is experiencing a development boom, Novare Central is a mixed-use centre consisting of retail space and A-grade offices. Africa’s largest food retailer, Shoprite, is the anchor retail tenant at Novare Central, which opened in July 2018.
www.novare-central .com
The Novare Matola mall development is located on the busy EN4 highway that connects Maputo in Mozambique to Nelspruit in South Africa. It falls within Matola, a historically industrial area of Maputo, the most populous city in Mozambique, which has developed to become a strong mid-income residential node of Maputo. The retail anchor in this centre, which opened in December 2017, is Premier Superspar.
www.novare-matola.com
Novare’s first foray into Zambia was the Novare Great North mall located along the bustling Great North Road of Lusaka. Situated close to the famous Heroes Stadium, Novare Great North caters to a previously underserved region of Lusaka. The development opened in March 2018 with a second phase scheduled to open in November 2018.
www.novare-greatnorth.com
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Also situated in Zambia’s capital city, the new Novare Pinnacle mall is centrally located in a prime area of Lusaka that is home to residential areas, embassies, top schools and sporting facilities - as well as strong road networks. Novare Pinnacle will add to the diversity of Lusaka’s vibrant retail sector, with Shoprite signed up as the anchor tenant. The development will open in April 2019.
www.novare-pinnacle.com
Novare Twin Palms is an existing shopping mall acquired by the group. The development of a second phase that will significantly extend the centre is underway. The existing mall is doing well with regards to leasing, and Woolworths has signed as the second anchor tenant for the expanded centre. Phase two of Novare twin Palms is scheduled to open in the second quarter of 2019.
www.novare-twinpalms.com
Novare was appointed to undertake the development of Standard Chartered Bank’s head office in Lusaka, Zambia. Construction commenced in July 2018 and agents have been appointed to handle leasing for the balance of the office space not being used by Standard Chartered. The building is expected to open in 2022.
Click here to view the development concept.
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Given the firm’s dedicated focus on the sub-Saharan Africa region, it has built a team with unrivalled knowledge and experience. With expertise in actuarial modelling, investment management, property development and facility management, our team ensures that the funds are expertly allocated and managed. With combined experience of some 270 years, our hands-on Africa team is on the ground in the countries in which we operate.
T H E T E A M
PIERREGROENEWALDchief investment
officer
JAREDHALLIDAY
chief operating officer
SIEWERTGROENEWALDchief financial
officer
DAVEBENNIE
head of leasing: africa
DERRICKROPER
managingdirector
CRAIGLYONSdirector
OLALEEPILE
executivedirector
LUCYRIDCHARSON
head of marketing
MAIQUEBOCA
development manager: mozambique
HEINDU PLESSIS
country head: nigeria
LESLEYLUDICK
project manager:mozambique
CHRISCOETZEE
project manager:zambia
CHRISTOHOFFMANN
centre manager: zambia
HARRYVENTER
centre manager:novare gateway
LERATOKUMALOmanager:
technical solutions
TABISAVUYOKAZI
DYANIinvestment
analyst
JOHN PCAUSEY IV
country head:zambia
BARRYVISSER
country head:mozambique
HENKOLIVIER
manager: financial structuring
NALEDIMONGOATO
manager: financial structuring
JOHANKIRSTEINfinancial structurer
WANJIRUKIRIMA
country head:east africa
GODWIN ADEGBE centre manager:
novare apo
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NAJWADAVIDSfinancial
accountant
CRYSTALTHYSSENassistant
accountant
MARCELLO KLEINSMITH
assistant accountant
PHAPHAMA MNCWANGO
assistant accountant
ELZAANKOTZE
financial manager
CHRISTOPHERHARRYfinancial manager
ANIENMARAISfinancial manager
NEILSWARTZsenior it
administrator
ELENICATACOUZINOSexecutive personal
assistant
ELIZE BOTHA
marketing coordinator
JONATHANMITCHELL
senior graphic designer
EBRAHIMEMANDIEN
senior graphic designer
YONELANTHLALA
social mediaspecialist
CANDICEPOWELL
social mediamarketing assistant
GRANT DAVIDSassistant
accountant
PIETERBORNMAN
project manager:zambia
AUGUSTINEMWENYAconsultant:
zambia
DANIELLAGONĢALVES
lease administrator
VAUGHNFREEMAN
tenant advisor: nigeria
THEODORE VILLETT
technical manager:
nigeria
KATSNYMAN
centre manager: novare central
ROBERTOBENN
centre manager:novare lekki
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NIGERIAN TEAM
HEINDU PLESSIS
country head
CHRISCOETZEE
project manager
DORCASMATO
lease administrator
ATINUKEETTU
project manager
SOLOMONOQUERI
accountant
KATSNYMAN
centre manager: novare central
GODWINADEGBE
centra manager:novare apo
VAUGHNFREEMAN
tenant advisor
MOZAMBIQUE TEAM
BARRYVISSER
country head
DAVEBENNIE
head of leasing: africa
LESLEYLUDICK
project manager
JAREDHALLIDAY
chief operating offi cer
HENKOLIVIER
manager:fi nancial structuring
MAIQUEBOCA
developmentmanager
LERATOKUMALOmanager:
technical solutions
ANGOLA TEAM
MAIQUEBOCA
developmentmanager
OLALEEPILE
executive director
JAREDHALLIDAY
chief operatingoffi cer
DAVEBENNIE
head of leasing:africa
ZAMBIA TEAM EAST AFRICA TEAM
HENKOLIVIER
manager:fi nancial structuring
JOHNCAUSEY
country head
JAREDHALLIDAY
chief operatingoffi cer
AUGUSTINEMWENYAconsultant
DAVEBENNIE
head of leasing:africa
PIETERBORNMAN
project manager
LERATOKUMALOmanager:
technical solutions
JOHANKIRSTEIN
fi nancial structurer
CHRISTO HOFFMANN
centre manager
JAREDHALLIDAY
chief operatingoffi cer
WANJIRUKIRIMA
country head:east africa
HARRYVENTER
centre manager: novare gateway
ROBERTOBENN
centre manager:novare lekki
DISCLAIMERThis document is confidential, private and intended solely for the addressee(s) and clients of Novare Equity Partners (Pty) Ltd (NEP) (Registration No: 2007/020662/07). Copyright in this document created by NEP will remain vested in us and will not be transferred to anyone in part or whole without the prior written consent of NEP. Past performance is not indicative of future returns which may go up or down. No guarantees are provided in relation to portfolio investment performance. Novare’s schedule of fees and charges is available on request.• Novare Equity Partners (Pty) Ltd is an Authorised Financial Services
Provider in terms of the Financial Advisory and Intermediary Services Act No 37 of 2002.FSP No 41836 (CAT I and CAT II).
• NEP is approved by the Financial Services Board as a Section 13B Pension Fund Administrator: 24/ 554.
• NEP is a member of the South African Council of Shopping Centres.• NEP is a member of the South Africa Nigeria Chamber of Commerce.
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