May 14, 2024

Old Mutual Property to European footprint following €150 million IFC investment

By: Sakina Nosarka, Chief Executive Officer at Old Mutual Property

Old Mutual Property, a prominent real estate property group fully owned by the integrated financial services giant Old Mutual Group, is set to bolster its presence in Europe following a significant investment boost.

Through its joint venture with AG Capital, known as Lion’s Head, the company has secured a €150 million sustainability-linked investment from the World Bank’s International Finance Corporation (IFC).

This strategic move aligns with Old Mutual Property’s vision to expand its operations in Europe, particularly in the logistics sector. Sakina Nosarka, Chief Executive Officer at Old Mutual Property, expands on the significance of this investment.

“This investment is set to provide a massive impetus in our strategy to grow our footprint in Europe. With this investment, we will be targeting investments in logistics infrastructure and assets in Bulgaria and Romania”.

Lion’s Head currently owns and operates five office buildings in Bulgaria’s capital Sofia and Bucharest, the Capital of Romania. All of the buildings have green certifications with a high level of sustainability. Lion’s Head is also in the process of building a new platform in the logistics and light industrial market in Bulgaria and Romania, which will be further supported by IFC’s investment.

“Our infrastructure logistics assets will be certified with the IFC’s EDGE Advanced green building certification,” adds Foster.

The investment from the IFC is further designed to support Europe's transition to green energy by ensuring that the building infrastructures acquired or built through this investment receive the EDGE (Excellence in Design for Greater Efficiencies) certification.

“We are proud to contribute to Europe's efforts to enhance its logistics and infrastructure connectivity and work toward addressing the global challenge of supply chain disruptions,” says Nosarka.

While Old Mutual Property already holds property assets in European markets valued at approximately R7 billion, this investment will significantly augment its asset base and competitive advantage in the market.

In South Africa, Old Mutual Property manages prime assets including Gateway Theatre of Shopping in Durban, Cavendish Square in Cape Town, and The Zone @ Rosebank in Johannesburg. Although not categorised as a real estate investment trust (REIT), the company aims to enhance its competitiveness in the local market by growing its asset base and positioning itself alongside industry peers.

Old Mutual Property looks forward to leveraging this investment to propel its growth in the European market while ensuring that it remains a competitive property player in the local market as well.

Insurance technology with a difference.

Say goodbye to complex legacy technology, and hello to a different kind of software solution.

Book a demo