http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
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 19, 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
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
JSE-listed Accelerate Property Fund has raised R500-million in an accelerated bookbuild, through the placing of 76.5-million new shares at R6.53 apiece. The proceeds would be used to reduce a portion of the company’s acquisition debt, including for the acquisition of...
More
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Electricity 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: Road and Rail 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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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