The first property development fund focused on sub-Saharan Africa is being raised.

The first property development fund focused on sub-Saharan Africa is being raised by Capitalworks Investment Partners to target UK investors, according to The Financial Times.

Hoping to avoid the downturn in values in more mature property markets such as the UK and France, the South African fund manager is aiming to raise a fund of $1 billion (£512 million) to tap into forecast growth in African real estate.

Whilst open to all overseas investors, it is mainly aimed at those in the UK and Middle East and the first round of fundraising is expected to close by late summer. It is targeting a 25% internal rate of return and will run alongside a South African partnership for South African investors.

Deloitte Real Estate Corporate Finance is providing fund advisory and placement services. Robin Priest, real estate partner at Deloitte in London, told The Financial Times that there would inevitably be an element of political risk but that growing stability and the untapped middle classes in the area made an attractive prospect.

“There is a new middle class fuelled by the commodities boom with nowhere to spend their money,” said Mr Priest. “With mature markets now generally heading south, there is the chance to tap into this growth.”

The fund has an equity target of $500m – which will be matched by debt of $500m provided by two South African banks – and will focus on a number of Sub-Saharan countries, including Mozambique, Zambia, Mauritius, Nigeria and Ghana.

Capitalworks is an independent alternative asset management firm in South Africa that provides access and specialist solutions to its clients, locally and abroad, across a diverse yet complementary portfolio of alternative assets.