The Sponsor and manager of the Fund is Actis, an emerging markets private equity firm founded in July 2004 when it spun out from CDC Group Plc (“CDC”, formerly Commonwealth Development Corporation). Actis is active in Africa, China, Latin America, South Asia and South-East Asia and has close to 60 years of experience investing in emerging markets through its CDC history. As of December 31, 2009, Actis had $4.8 billion worth of assets under management, 69 portfolio companies employing more than 87,000 people. 117 limited partners have invested in Actis-led funds.

The Project is a proposed equity commitment of up to $25 million in AARE 2, not to exceed 20% of total capital commitments. The projected final size of the Fund is $250 million to be raised over at least two closings.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The Fund will invest in real estate companies and/or projects located mainly in Western and Eastern Africa. The Fund will make equity investments ranging from $15 to 40 million per company focusing on development stage real estate projects and/or selective acquisition and repositioning of assets, in property segments with strong economic drivers and clear supply shortages (primarily class A retail / leisure, class A office and affordable residential).

The Fund will have the following development impacts: i) contribution to filling the gap between supply and demand for quality commercial real estate and providing increased access to quality business infrastructure critical for economic growth in key markets of Sub-Saharan Africa; ii) improvement of business infrastructure standards through the introduction and the implementation of best practices in terms of environmental and life and safety standards in key markets of Sub-Saharan Africa; iii) development of quality retail infrastructure in Sub-Saharan Africa thus improving access to quality products and services for the consumers; iv) creation of direct and indirect jobs both during construction and operation of the commercial properties in the target markets, and v) benefits to other sectors of the economy such as in the supply chain.

IFC's additionality will manifest itself in the following areas:
(i) resources mobilization: IFC's presence, as an anchor investor, will help raise additional funding from other financial institutions including multilateral institutions;
(ii) establishment/improvement of corporate governance, environmental, social, health and safety standards: IFC will ensure that investee companies implement international standards in these areas and will help the Fund identify opportunities for energy efficiency and other green building elements;
(iii) fund structuring knowledge: IFC will ensure that the Fund's terms are in line with international commercial best practices;
(iv) provision of additional financing: investee companies may benefit from IFC’s direct investment in both debt and equity through co-investment opportunities.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC reviewed the Fund’s expected portfolio and sectors of investment and the Applicable Performance Requirements include; (i) the IFC FI Exclusion List; (ii) the applicable National Social and Environmental Laws and Regulations and; (iii) the IFC Performance Standards. IFC also reviewed the capacity of the Fund to manage social and environmental risks and their existing Social & Environmental Management System (SEMS). The Fund has a robust and entrenched SEMS. Based on the assessment, the Fund Manager will be required to: (i) ensure the SEMS, prior to commitment, is to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements; (ii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements; (iii) notify IFC if a proposed Portfolio Company conducts or intends to conduct any Category A or Category B activity; and (iv) submit a periodic report to IFC as per a format to be provided by IFC. Additionally, IFC will review the implementation and performance of the Fund’s SEMS for the first three projects subsequent to IFC''s investment to ensure the satisfactory implementation of the Fund’s SEMS.