South Africa: Eris Property Group raises $41m for student accommodation fund

Eris Property Group has raised an initial R650 million (about $41.4 million) for its social impact student accommodation fund from a consortium of domestic and international investors including Momentum Metropolitan Life, Eskom Pension and Provident Fund and the International Finance Corporation, which has announced the potential commitment on its website for comment.

Eris has been leveraging on its existing skills within property developments and management to alleviate the need for student accommodation shortages in South Africa, which culminated in the development of its sub-brand RISE Student Living. RISE Student Living property management service is completely tech-driven, whereby the entire leasing process, encompassing every stakeholder involved, happens digitally.

The fund’s first investment was Units on Park, Hatfield, a 988-bed student accommodation property developed and managed by Eris Property Group. This transaction marks the first of a pipeline of assets currently under consideration for development and inclusion in the fund. Units on Park was completed on 1 November 2019 ready for the first intake of students in January 2020. The fund is considering various projects with the objective of aggregating a quality portfolio of prime assets in select cities across South Africa.

Eris’s approach to private student accommodation will endeavour to commit to projects that house a minimum of 70% of the beds at the NSFAS (National Student Financial Aid Scheme) rates or below, ensuring that students are receiving wi-fi, water, electricity, as an all-inclusive rental.

Reach Africa’s private equity community by publishing a Showcase Article, Job Opportunity or Event on Africa Private Equity News. Contact us at editor@africaprivateequitynews.com for our rate card and more information.