Assets worth over R7.2bn (US$486m) in the pipeline
Projects ready for construction requiring R1.1bn
Months to deploy previous Eris SA-focussed funds
Minimum 16% IRR in ZAR over 6 years.
R2.0bn of commitments
Unlimited, but will initiate a liquidity event once all funds have been deployed and the market is appropriate for listing.
South African Student Accommodation Impact Investments (SASAII), Pty. Ltd.
Standard Limited Liability Company Structure (SASAII is not a “ PE Fund”)
Eris Property Group (Eris)
Geographic Focus – South Africa
Asset Composition – Development & Management of purpose-built student accommodation
20% single property limit
Exposure targets : 75% of beds developed to be within the NSFAS price point for that node (NSFAS is an SA government subsidy program for student accommodation available to the lower income)
Asset Management Fees of 1% (on drawn capital only)
The Company will develop and invest in PBSA assets which are expected to produce annual returns on equity (internal rate of return) in excess of 16.0% after fees.
Targeted investments will be in areas which are demographically attractive to ensure assets retain their investment value during the investment period and optimize the ability to find replacement cashflows for expiring of failed tenants.
Up to 60% on the consolidated and subsidiary basis
Listing on JSE (Target is within 5 to 7 years)
Secondary option of sale of the portfolio or individual sale of assets via trade sale or placement from financial investors
Governance structure is not fund-like but shareholder-driven. SASAII will be externally managed by Eris Property Group (Investment Manager, but there will be strong oversight by shareholders).
+27 (0)11 775 1000
Note: SASAII is not a “Fund”
(a) Legal form: a company registered in South Africa (b) Management: externally managed but by an institutional manager (Eris), not dependent on a management team; (c.) Fee Structure: fee structure is different from a that of PE funds (including no carry, which makes the arrangement less costly and better aligned); (d) IPO: Pursues a listing and an IPO.