The International Finance Corporation (IFC) has made a $150-million equity investment in property developer and real estate fund manager Eris Property Group's South African Student Accommodation Impact Investments platform.
The investment will help Eris develop and operate accommodation for up to 15 000 students over the next five years, helping to meet soaring demand.
The IFC has also committed to helping Eris raise additional funds for student accommodation from other parties.
“We are excited to welcome the IFC as a core investor in our student accommodation platform. Eris has developed a high-quality product at an affordable rental level and we look forward to executing on our substantial pipeline,” says Eris executive head of student accommodation Johan van Vuuren.
“By helping to address the acute shortage of affordable student accommodation in South Africa, this investment will improve student proximity to universities and colleges, improve student safety and provide a more conducive learning environment,” adds IFC South Africa country manager Adamou Labara.
The IFC estimates that South Africa has a shortage of about 500 000 beds for students at universities and vocational training schools.
With the IFC’s support, Eris plans to develop a portfolio of student accommodation in South Africa of between 10 000 to 15 000 beds over the next five years. The entire portfolio will be certified as “green” under EDGE, an IFC innovation that makes it easy to design and certify resource-efficient and zero-carbon buildings.