Old Mutual Property, a real estate property group owned by financial services giant Old Mutual, is set to bolster its presence in Europe following a significant investment boost.
In South Africa, Old Mutual Property manages prime assets including Gateway Theatre of Shopping in Durban, Cavendish Square in Cape Town, and The Zone @ Rosebank in Johannesburg.
Through its joint venture with AG Capital, known as Lion’s Head, the company has secured a €150 million (R3 billion) sustainability-linked investment from the World Bank’s International Finance Corporation (IFC).
The group said in a statement yesterday that this strategic move aligned with Old Mutual Property’s vision to expand its operations in Europe, particularly in the logistics sector.
Sakina Nosarka, the CEO of Old Mutual Property, said, “This investment is set to provide a massive impetus in our strategy to grow our footprint in Europe. With this investment, we will be targeting investments in logistics infrastructure and assets in Bulgaria and Romania”.
Lion’s Head currently owns and operates five office buildings in Bulgaria’s capital Sofia and Bucharest, the capital of Romania. All of the buildings have green certifications with a high level of sustainability. Lion’s Head is also in the process of building a new platform in the logistics and light industrial market in Bulgaria and Romania, which will be further supported by IFC’s investment.
While Old Mutual Property already holds property assets in European markets valued at approximately R7 bn, this investment would significantly augment its asset base and competitive advantage in the market, it said.
“Old Mutual Property looks forward to leveraging this investment to propel its growth in the European market while ensuring that it remains a competitive property player in the local market as well,” it said.
BUSINESS REPORT