Phatisa presents the Pan African Housing Fund focused on affordable housing in Eastern and Southern Africa

Transcription

1 Phatisa presents the Pan African Housing Fund focused on affordable housing in Eastern and Southern Africa

2 Recognising African housing and community needs Recognising housing and community needs One of the most critical shortages facing sub-saharan Africa today is suitable shelter and housing. The Pan African Housing Fund (PAHF) was developed to address this need, investing primarily in affordable and middle income residential developments and mixed-use precincts, where both residential and commercial properties are combined. The Fund anticipates social development returns in: > Employment The fund will create in excess of 22,500 jobs. > Health and education One of the most important components of anti-poverty interventions is housing development. > Financial mobility Having access to proper housing could allow individuals to take the first step towards developing small or medium-sized enterprises. > Security of tenure Home ownership and security of tenure encourages individuals to invest not only in their properties, but also in their communities.

3 Salient feature Salient feature The key obstacle in several African real estate markets lies in the lack of an established developer class and the PAHF will actively seek to provide risk capital and other resources to indigenous developers who offer scalable investment opportunities in the identified geographies. This Fund also marks the first time that a pool of high-profile international DFIs (development finance institutions), African banks and insurance companies have come together in a unique private equity fund to drive investment into the African housing sector. Investment approach Investment approach First close achieved at US$ 41.5 million. Final Fund size capitalisation is targeted at between US$ 80 and 100 million. Minimum commitment required US$ 5 million. The PAHF deal pipeline comprises potential projects across Eastern and Southern Africa. Target countries include Kenya, Mozambique, Rwanda, Tanzania, Uganda and Zambia. The Fund provides risk capital to projects on a joint-venture basis to selected developers who have demonstrated the ability to successfully execute projects in the designated real estate sector. The Fund will also work closely with these developers to increase both their technical and scale capabilities. Senior debt is utilised by PAHF to complement a mix of proprietary risk capital.

4 PAHF will only execute transactions where it has the capability to manage all risk aspects of the investment.

5 Social responsibility Social responsibility The Fund is built on a business ethos underscored by the principles of sustainability, ensuring that it acts in the interests of communities and all areas of the natural environment that are impacted by the Fund s investments. The inclusion of a Code of Conduct for Land Acquisition and Land Use in development projects marks a breakthrough for African real estate private equity. In strict compliance with global and Mauritian legislation around money laundering and financing of terrorism, Anti Money Laundering and Anti Bribery and Corruption Policies are in place and are embraced by the Fund. We embrace sustainable development practices in our investments, by integrating social and environmental management principles into decision-making processes through the Social and Environmental Management System (SEMS).

6 Developmental impact Developmental impact The deliverables are two-fold, and of equal importance: > Financial return to shareholders > Enhancing social capital by contributing to building sustainable communities In line with the terms of the Bristol Accord, we are developing sustainable communities where people will want to live and work. These integrated community developments are safe and inclusive, well planned, well built and effectively run, and offer equality of opportunities and good services for all. The Fund s unique features are: > Full suite of funding solutions for local developments > Strong multi-geography pipeline of developments > Strong international and local investors supporting the Fund > Fund Manager is located in Africa, with proven private equity and specific residential housing experience > Extensive and advanced deal pipeline in the target sectors with experienced local development partners The PAHF aims to build in excess of 7,500 homes in six countries, providing access to shelter and sustainable communities to over 30,000 people. The direct economic impact of the PAHF can be measured directly in terms of both job creation and new revenue to governments. The PAHF investments hope to create an estimated 22,500 jobs and new government revenue in the order of US$ 38.5 million over the life of the Fund.

7 PAHF hopes to provide access to shelter and sustainable communities to over 30,000 people.

8 The Pan African Housing Fund is managed by Phatisa, a multi-award winning African private equity player operating from offices in Mauritius, Kenya, Zambia, Ghana, South Africa and London. The property team comprises industry specialists, operational experts boasting broad real estate expertise, reliable partnerships and strong business networks across Eastern and Southern Africa. Phatisa Group is led by Valentine Chitalu, Chairman, and Duncan Owen, Senior Managing Partner. The Phatisa property team is headed by Jan van der Merwe and Eton Price, Fund Partners Pan African Housing Fund. Phatisa Property Fund Managers Limited is a member of Phatisa Group Limited Mauritian C1/GBL Company Registration no FSC Licence no. C (MU) FSP Licence no (RSA)