Kenya: IFC proposes investment in housing fund

The IFC has disclosed a proposed equity co-investment package of up to €19.3 million (~$20.9 million) to invest along with private equity firm IHS in the development and acquisition of approximately 5,000 newly developed, resource efficient, green affordable housing properties in Kenya.

IFC will provide equity for the development of affordable housing projects with an initial focus on the Nairobi metropolitan area and selectively in other Kenyan counties. The fund will be managed by IHS Kenya Green Housing Fund GP Limited, through its main investment management team based in Nairobi. IFC will utilise a ’sidecar’ investment structure by using a newly created special purpose vehicle that will have IFC as its only limited partner co-investing alongside with the fund in selected investments.

IHS is a private equity firm focused on affordable housing in Africa. It manages four affordable housing funds in the Southern African region and owns a listed REIT on the Johannesburg Stock Exchange. IHS is a wholly owned subsidiary of US-based Hunt Companies, a real estate and infrastructure fund manager.

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