April 18, 2015
A South African real estate firm, Realty Africa, has launched a crowdfunding platform targeting foreign investors seeking to invest as little as $1,000 in a fast growing property sector in the sub-Saharan region, a press statement from the firm said on Friday.
The company, which provides property development investment options to clients mostly in Southern Africa, aims to raise undisclosed amount every year to fund social housing, eco lodges, hotels, factories and other [commercial] real estate projects across African markets.
“Most investors still find it scary to invest in Africa. That’s why experienced and large investors control almost the entire market,” Erik van Eeten, co-founder and chief financial officer at Realty Africa said in a statement.
Eaten said like any other crowdfunding initiative, his firm will enable African communities and project developers to raise cheap capital, as interest rates will be low and they won’t be required to provide collateral.
Already, some projects focused on family housing and eco-friendly tourism have been indentified and approved for the crowdfunding platform.
To ensure accountability international auditing firm Deloitte has been appointed to conduct the due diligence on all projects before they are promoted on the Realty Africa platform.
“Each project for which there is a demand and for which a realistic investment proposal can be made is eligible. Deloitte’s due diligence will screen each project before it is posted on the platform,” Eeten said, adding that they have water tight contracts that will prevent owners from selling their property.
Source: AFK Insider