Atta Africa Financial Update

Executive summary:The continent’s rich gravitating to Gauteng and the Western Cape.

A report by Sandton wealth intelligence firm New World Wealth and AfrAsia Bank has found that a large number of African dollar millionaires are investing in property in South Africa. While UK buyers top the list for high-end real estate, followed by Germans, the report shows that a large number of Africans are also buying homes in the R10 million (US$750k) price range in South Africa.

The bulk of them come from Angola, Ghana and Nigeria but also from Uganda, Gabon, Kenya, Zimbabwe, Congo and Mozambique - residential property normally constitutes between 25% and 30% of the net assets of an average African high net-worth individual.

Sandhurst, Hyde Park and Houghton in Johannesburg, as well as Fresnaye, Bantry Bay, Llandudno, Clifton and Camps Bay, all hold appeal for rich African buyers. Contributing to demand are South Africa's private healthcare system, private schools, luxury residential estates, exclusive shopping malls and high-end food stores.

Last year half of the sales in real estate were to foreign buyers and nearly half of these were from the continent.

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Quona Capital to back AllLife

  • Quona Capital - through the US$141 million Accion Frontier Inclusion Fund - is backing AllLife, a life insurance company providing cover for those with HIV and diabetes in South Africa
  • Financial terms of the deal were not disclosed

DOB Equity to back Africa Logistics Properties

  • DOB Equity has become the latest investor to back Africa Logistics Properties, a developer and manager of Grade A warehousing in Nairobi
  • The Dutch family office is investing US$4 million in the firm for an undisclosed stake
  • The capital will be used to support Africa Logistic Properties’ warehouse development plans as well as its expansion plans across the broader East Africa region

Sibanye plans US$1bn rights issue to refinance Stillwater acquisition

  • South African-based precious metals producer Sibanye Gold plans to raise US$1 billion through a rights issue to repay a portion of a US$2.65 billion loan facility it used to acquire U.S. platinum producer Stillwater
  • Sibanye, a Gold Fields spin-off, has been expanding out of gold and now South Africa, reducing its reliance on bullion and exposure to the political and social risks of its home base