The International Finance Corporation (IFC) has announced a $150 million equity investment in property developer and real estate fund manager— Eris Property Group to provide accommodation for up to 15,000 students over the next five years.
The IFC has also committed to helping Eris raise additional funds for student accommodation from other parties.
Eris executive head of student accommodation, Johan Van Vuuren said: “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.”
Through the investment, 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.
IFC South Africa country manager Adamou Labara stated: “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.”
The IFC estimates that South Africa has a shortage of about 500 000 beds for students at universities and vocational training schools.