[South Africa] Old Mutual Alternative Investments acquires 50 percent stake in Faircape Life Right Holdings
Old Mutual Alternative Investments (OMAI), Africa's largest private alternative investment manager, has acquired a 50% interest in Faircape Life Right Holdings for an undisclosed sum via its specialist retirement accommodation fund, Old Mutual Retirement Accommodation Fund (OMRAF).
The deal is subject to approval by the Competition Commission.
The Faircape Group is a leading property company that has been creating superior quality residential estates and commercial office spaces across South Africa since 1984.
Its specialist focus in the retirement sector has culminated in Faircape owning and managing one of the largest retirement portfolios in the Western Cape, along with associated state of the art health care facilities.
Its subsidiary Faircape Life Right Holdings, in which OMRAF has acquired a 50% stake, owns and operates six luxury lifestyle villages comprising a total portfolio of 976 units at prime locations across the Western Cape.
The villages offer a selection of 1, 2 and 3 bedroom homes in tranquil garden settings, with facilities specifically tailored for active retirees.
A hallmark of the business is Faircape's ongoing involvement and vested interest in the operating retirement village. Under the terms of the deal, Mike Vietri, CEO of Faircape, and his established management team will continue to provide day-to-day management of the retirement villages.
With the addition of the Faircape properties, OMRAF owns and develops a total of approximately 1600 separate retirement units and related properties spread across 10 separate villages primarily in the Western Cape, a market OMRAF first entered in May 2015 to take advantage of strong and growing demand for retirement accommodation in South Africa.
Paul Boynton, Chief Executive Officer of Old Mutual Alternative Investments (OMAI), said:"We are delighted to announce our new 50% shareholding in Faircape Life Right Holdings and our partnership with Mike Vietri and his management team, who will continue to be responsible for the day to day operations.
"Faircape is a trusted developer and specialist retirement sector operator whose six villages are testimony to its track record of creating and managing quality retirement accommodation solutions in the market. In Faircape we have a partner who shares our values and long-term approach. "Faircape has deservedly earned a reputation as a premium retirement lifestyle brand in South Africa and by partnering with OMAI now has ready access to expansion capital to fund growth in an attractive market with strong demand for premium accommodation."