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Directorate and investment committee members: Rudolf Pretorius
Brendon Jones
Brett Childs
Date of incorporation: March 2016
Preference shares in issue: 4 143 332*
Auditor: Morison Mauritius
Preference share market capitalization: USD 4.4 million
Number of equity investment holdings: 3
Net asset value per preference share: USD 1.05
*APEO received further subscriptions for preference share capital equal to USD 18 332 for the quarter ended 31 March 2017


The Company’s objective is to generate above average investment returns from the investment opportunities the Directors introduce through their involvement with various investment structures and/or corporate networks, mainly in Africa. The Company evaluates investment decisions with the aim to deliver a total USD portfolio return of at least 12,5% per annum above the annual change in the United States Consumer Price Index over the lifetime of the investment.

The Company may invest in any asset class, listed or unlisted, in any investment market and in any currency provided 75% of its effective investment exposure (other than cash) is in PE Assets. Any individual investment (at cost) may not comprise more than 30% of the total portfolio value at the time, or USD 8.0 million whichever is the greater.



2016 n/a n/a -2.01% 1.64% -0.40%
2017 5.88%       5.88%



(USD’000) Novare II Alphamin Addis Pharma Equity total Cash Total Total %
Nigeria 687 - - 687   687 15%
Zambia 195 - - 195   195 4%
Mozambique 144 - - 144   144 3%
DRC - 1,040,910 - 1,041   1,041 23%
Ethopia - - 249 249   249 6%
Cash & Networking Capital - - - - 2,180 2,180 48%
TOTAL 1,025 1,041 249 2,316 2,180 4,495 100%



(USD’000) Novare II Alphamin Addis Pharma Equity total Liquid assets Total %
Mining - 1,041 - 1,0410   1,041 23%
Property 1,025 - - 1,025   1,025 23%
Manufacturing & Distribution - - 249 249   249 6%
Cash & Networking Capital - - - - 2,180 2,180 48%
TOTAL 1,025 1,041 249 2,316 2,180 4,495 100%



APEO made no new investments in the quarter ended 31 March 2017. A further USD 383k was invested in Novare II during the quarter under review. The current portfolio comprises of:

Novare Africa Property Fund II (“Novare II”)

An investment commitment of USD 2.0 million was made towards Novare II on 30 June 2016 during the fund’s final closing. Novare II is a USD 350 million fund that develops retail and commercial developments in major African cities.

Approximately half of the investment commitment towards the fund had been drawn down by 31 March 2017. We expect that the remainder of the undrawn commitments will be called for over 2017 and early 2018 as existing and new building projects in Nigeria, Zambia and Mozambique come on stream.

Novare II’s shopping malls in Nigeria were valued by external independent valuators at the end of 2016, and despite the weak Naira resulted in a mark-up of approximately 40% against cost, resulting in the value per Novare shares increasing to USD1.21 against a subscription price of USD 1.00. We expect further positive revaluations to be recorded during 2017 and 2018 as additional malls come on stream.

Alphamin Resources Corporation (“Alphamin”)

Alphamin, a Toronto listed tin mining company is gearing up to build a 13k ton per annum tin mine in 2017 at Bisie, North Kivu Province, in the DRC. The Bisie tin deposit is one of the largest and most significant tin deposits in the world.

Alphamin has recently started the early works of the formal mine construction whilst it is completing its fund raising. More information is available here.

The tin price remains attractive at around USD20k per ton. The political situation in the DRC remains tense, but stable in the Northern Kivu Province where Bisie is located. Alphamin’s share price closed at the same level as the previous quarter, being CAD 0.34, compared to APEO’s subscription price of CAD 0.30 in the 3rd quarter of 2016.

Addis Pharmaceutical Factory Share Company ("Addis Pharma")

Addis Pharma is a leading pharmaceutical manufacturer in Ethiopia which manufactures a number of therapeutic products across different categories that it supplies to both the Government and private sector in Ethiopia.

The business continues to trade profitably whilst it is undergoing a major capital expansion and upgrade program, the benefits of which it is expected to boost the growth rate by around 50% in 2017/8. The investment currently remains in APEO’s books at cost.



The existing investments all remain on track to better our underwriting criteria of US inflation plus 12.5% over the next few years. APEO currently has cash, mainly held in short dated bond/money market funds equal to USD 2.2million, which achieved a USD 6.3% return in 2016, and 2.3% return in the first quarter of 2017.

Apart from the USD 1.0 million outstanding commitment to Novare II, we have a number of potential or earmarked investment opportunities. We are retaining a “wait and see” approach when looking at opportunities priced against public stock markets, given particularly demanding listed global equity stock market valuations at the moment.


Phone | +230 269 4166
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