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
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)
Real Economy Insight: Construction 2015 (PDF Report)
Real Economy Insight: Electricity 2015 (PDF Report)
Real Economy Insight: Road and Rail 2015 (PDF Report)
This Week's Magazine
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...