Aug 17, 2012
Specialist inner-city financier receives R125m injectionBack
Africa|Housing|National Housing Finance Corporation|Projects|Rental|TUHF|Africa|South Africa|Rental Housing Finance Niche Market|Samson Moraba
© Reuse this
Commercial property financier TUHF, which specialises in affordable rental housing in South Africa’s inner cities, has announced that it has received a substantial capital injection of R125-million, increasing the company’s net asset value to R200-million.
The investment, received as equity from the National Housing Finance Corporation (NHFC), Futuregrowth Asset Management and the Public Investment Corpor-ation (PIC), follows successes achieved by TUHF in the affordable rental housing finance niche market.
TUHF drives inner-city invest- ment by assisting potential investors in becoming property entrepreneurs through the provision of loans to buy or improve residential property in South Africa’s inner-city areas.
Specialising in reasonably priced housing projects in areas of urban decline, the financier’s strategy is to concentrate on small areas and create buoyant residential property markets in the inner cities.
The NHFC believes this most recent fund injection will act as a catalyst in facilitating investment from other public- and private- sector investors.
Combined with its previous equity investments in TUHF, the NHFC’s current investment is a debt equity conversion of R75-million, with R40-million converted into 20% of B shares and R35-million into preference shares in TUHF.
The NHFC was one of the founding members of the TUHF and has supported it through equity and debt funding.
“This facilitative role has culminated in TUHF’s ability to now raise capital from large investment institutions, which include the PIC and Futuregrowth. We are satisfied with the TUHF business model, which contributes to the creation of entrepreneurs in the inner city who were historically disadvantaged,” explains TUHF chairperson Samson Moraba.
Futuregrowth, a long-standing debt investor, has, through this most recent investment, become a shareholder in TUHF along with the PIC, having made a collective equity investment of R50-million for a 25% share in the financier.
TUHF’s established R1.4-billion investment in the inner city, combined with these equity investments, positions the company well to leverage substantial debt facilities in financing the targeted growth.
“The organisation plays a critical role in the affordable rental market and much-needed inner-city regeneration, and we will continue to play an active role in ensuring that its delivery model is replicated in other parts of the country,” Moraba points out.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other Construction News
Electrical solutions consultant Magnet was appointed Southern African distributor for Dromex personal protection equipment (PPE) in April this year. MD Brian Howarth said that Magnet had recognised an urgent need in the electricity industry for increased safety for...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
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.
This Week's Magazine
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme. LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
The Development Bank of Southern Africa (DBSA) – which disbursed a record R13-billion during 2015, from R12.7-billion in the prior year – remained optimistic that it could ramp-up loan disbursements to R25-billion a year by 2018 as it sought to give greater emphasis...