British International Investment

Construction and real estate

Our impact mission

A flourishing Construction and Real Estate (CRE) sector is vital for economic development. And, therefore, investments in the sector play a large role in determining whether cities become centres of sustainable, climate resilient and inclusive growth, or whether they continue down a path of resource-intensive, unplanned, and inequitable expansion.

Using our flexible risk appetite, we evaluate investments across the CRE value-chain and deploy a solutions-based, product-agnostic approach, addressing the development needs of our markets. Further, through our investments, we aim to deliver positive impact for communities in three ways:

  • Creating economic opportunities
  • Enabling inclusive urbanisation
  • Fostering environmental sustainability

How we invest in the sector

We are impact-led and commercially rigorous. We aim to deliver impact in two broad ways:

Sector development – by looking at investments in the following themes to address the market imbalance:

  • Business Infrastructure: our target asset classes include industrial and logistics parks, and budget hotels
  • Social Infrastructure: we explore investments in housing and student accommodation
  • Climate sustainability: we focus on mobilising green finance to support the climate transition, including promoting green buildings and decarbonisation initiatives

Market strengthening – through our work, we aim to:

  • Bring best international practices to our markets in the areas of development and commercial operations, ESG and gender equality
  • Mobilise additional, with a view to building a commercially sustainable CRE sector

 

You can read more about how and why we invest in construction and real estate in our sector strategy.

Key data

$350m+

Our CRE commitments since 2012

84%

Of our CRE portfolio in Africa

16%

Of our CRE portfolio in South Asia

54:46

Split between fund and direct investments

Who we partner with

The development partners that we invest in, and alongside, can vary. The partners we work with can depend on the real estate being developed, their position along the value chain, their maturity and their alignment to our values and mission.

Our partners include:

  • Best-in-class real estate developer (local and international)
  • Real estate focused funds
  • Operators and corporate businesses
  • Impact investors, development finance institutions and other financing institutions

 

Products

We use our capital flexibly and can find a solution that best fits the opportunity

Equity

Ticket Size ($)   20-50m+
  • We typically prefer significant minority stakes
  • We invest USD, EUR and INR
  • We have a predominant focus on ESG, gender and climate-focused investments
  • We look to encourage capital mobilisation

Debt

Ticket Size ($)   20-50m+
  • We typically provide senior debt and mezzanine
  • We invest USD, EUR and INR
  • We have a predominant focus on ESG, gender and climate-focused investments
  • We look to encourage capital mobilisation

Funds

Ticket Size ($)   20-50m+
  • We support fund manager growth especially in building, operational, ESG, business integrity and climate mitigation expertise
  • We provide co-investment capital to GPs with strong on-ground presence and origination capacity
  • We encourage appetite from commercial investors

Key contacts

Ilaria Benucci

Head of Construction and Real Estate

Leandro Cuccioli

Director and Head of Consumer Services and Social Infrastructure

Read our Annual Review 2022