http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.11Change: -0.21
R/$ = 13.43Change: -0.15
Au 1138.18 $/ozChange: -2.87
Pt 1008.00 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 20, 2012

Partnership to bridge housing capital gap

Back
Design|Gauteng Partnership Fund|Housing|National Housing Finance Corporation|PROJECT|Projects|Rental|Resources|Sustainable|Funding Solution|Boni Muvevi|Kutoane Kutoane|Samson Moraba
Design|Housing|PROJECT|Projects|Rental|Resources|Sustainable||
design|gauteng-partnership-fund-company|housing|national-housing-finance-corporation|project|projects|rental|resources|sustainable|funding-solution|boni-muvevi|kutoane-kutoane-person|samson-moraba
© Reuse this

Provincial housing funder, the Gauteng Partnership Fund (GPF), has partnered with the National Housing Finance Corporation (NHFC) on a R200-million Entrepreneur Empowerment Property Fund (EEPF) programme aimed at Human Development Index-owned companies pursuing rental-housing opportunities in Gauteng.

The GPF and the NHFC formally entered into the cofunding agreement on June 18.

“The EEPF programme, which was launched in 2010, was initiated as an intervention for the affordable housing market. Black property entrepreneurs have, to date, experienced a myriad of constraints in entering the market.

“The partnership provides a funding solution to bridge the capital gap experienced by these property entrepreneurs,” says GPF CEO Kutoane Kutoane.

He adds that the global financial woes have unabatedly continued to pound on the confidence of banks to increase their quantum of funding in the low end of the housing market, as well as continued to frustrate their programmes.

Nevertheless, he says banks have shown great resilience and innovative design capabilities in their funding models. He hopes this will translate into an increased quantum of funds being allocated to affordable housing programmes.

The GPF mandate has, over the years, evolved in line with the changing provincial government housing objectives.

The GPF has extended its funding facilitation reach to cover the wider affordable rental housing market.

It is estimated that 25% of South African households have no access to housing, owing to affordability challenges.

“To promote the sustainable entry of black economic-empowerment participants in the ownership of medium-density property in the inner cities, the NHFC has partnered with the GPF to enable the transformation of the affordable rental property market,” says NHFC CEO Samson Moraba.

“This partnership will ensure that EEPF projects have up to 95% project funding available,” adds GPF chief investment officer Boni Muvevi.

These are households that earn above the government housing-subsidy threshold but do not qualify for bank mortgages, as a result of their perceived high risk and low credit rating. The assumption is that the percentage of such households is much higher in Gauteng.

“EEPF participants are selected through a public call and vigorous selection process on a yearly basis,” says Muvevi.

After a public call for proposals is made, prospective entrepreneurs are short-listed and put through a rigorous induction programme that covers aspects such as property, facilities and resources management.

The first proposal call yielded 11 participants, of which eight have had their proposals approved and secured funding.

Once a project is approved, a dedicated GPF programme manager will be available to assist with any challenges.

The GPF board of trustees has approved R100-million for the EEPF facility and another R100-million from the NHFC as part of the cofunding agreement. Additional funding will be considered depending on the programme’s success.

In line with the provincial government objective of delivering 20 000 rental accommodation units by 2014, the GPF has committed to the objective of facilitating funding for 6 000 units in its current strategy.

This will require over R1.4-billion in funding, of which government will be expected to contribute about R470-million.

With the new partnership between the GPF and the NHFC, as well as the benefit of experience, the provision of affordable accommodation makes economic sense and is a good investment for entrepreneurs, states the GPF.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
Eqstra Contract Mining Division CEO Justin Colling
JSE-listed Eqstra’s embattled contract mining and plant rental division is showing signs of recovery and is nearly ready to look after itself, the unit’s new CEO Justin Colling said on Tuesday. The division plunged into turmoil last year, dragging its parent’s...
Moe Shaik
Megaprojects are often over budget and delayed and project planning is a crucial element in ensuring the successful delivery of such projects.
JSE-listed real estate investment trust (Reit) Hyprop achieved a 15% increase in total distributions to 543c a share for the 2015 financial year. Revenue and distributable earnings from investment property increased by 11.9% and 14.5%, respectively, while net asset...
Article contains comments
Article contains comments
More
 
 
Latest News
Updated 7 minutes ago The South African Municipal Workers’ Union (SAMWU) has signed a salary agreement with employer body, the South African Local Government Association (SALGA), the union said on Wednesday. ”The signing comes after rigorous mandate taking process to members which...
Updated 19 minutes ago South African Airlines is close to finalising the cancellation of a contract to supply ten Airbus A320 aircraft as part of plans to get the national carrier back to profitability, its CFO said on Wednesday. "We need to get the final approval from the board who can...
Updated 1 hour 45 minutes ago The Barclays Purchasing Managers’ Index (PMI), which declined by almost 5% month-on-month in August, highlights “renewed pessimism” in the economy, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) said on Wednesday. Seifsa chief economist...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96