GAUTENG PARTNERSHIP FUND:

Presented by Boni MuveviChief Executive Officer

PRESENTATION – SAIBPP ANNUAL CONVENTION

PRESENTATION CONTENT

• GAUTENG PROVINCE• HOUSING CHALLENGES• STRATEGIC RATIONAL FOR HOUSING• GPF BACKGROUND• GPF MANDATE, PURPOSE & ROLE • MARKET INTERVENTIONS• INVESTMENT PROCESS & CRITERIA • TYPICAL PROJECT STRUCTURE• PROPERTY EMPOWERMENT FUND• EEPF FUNDED PROJECTS• GPF PERFORMANCE• STRATEGIC PARTNERS• PRIVATE EQUITY FUND

SOUTH AFRICA

GAUTENG PROVINCE – HOUSING CHALLENGEApprox. 900 000 – LOW INCOME

HOUSING BACKLOG

WHY AFFORDABLE HOUSING?

CONTRIBUTION TO ADDRESSING NATIONAL ISSUES!

• Historical housing backlog

• Redressing the Legacy of living apart – Apartheid

• Capital redistribution and empowerment

• Property ownership, as an asset and a means for creation of wealth

• Reducing unemployment /job creation

• The constitutional right to housing for all SA citizens

• Demand by people for better infrastructure and services (housing)

• Is this government responsibility only ?

GAUTENG PARTNERSHIP FUND

WHY PARTNERSHIP?

AFRICAN PROVERB:

“IF YOU WANT TO GO FAST, GO ALONE. IF YOU WANT TO GO FAR, GO TOGETHER”.

STRATEGIC RATIONALE FOR HOUSING?

Government

-Resources

-Control/ Standards

- Power / influence

- Concern for Constituency

Private Sector

- Products

- Processes

- Solutions

- Expertise

Working

together

WIN-WIN

Relationship

Community

-Housing

- Dignity

-Family life

-QOL

SOCIAL RESPONSIBILITY AND BUSINESS OPPORTUNITY

Based on C.K Prahalad: The fortune at the

bottom of the Pyramid: Eradicating poverty

through profits: 2005; Dr Llewellyn 2011 –presentation.

Contribution to SA Economy

• Construction & Property –jobs, tax revenue

• Mining sector – cement,

stones etc.

• Manufacturing – doors,

lintels etc.

• Small business – plumbers,

elect etc.

• Finance industry –mortgage, microfinance

• Social investment –sustainable society

Realities of limitations and

challenges:

• Not enough capital available

in govt treasury.

• Pace of delivery needs to be

improved.

• Insufficient skilled human

capital in govt.

• Limited innovation.

• Driven by FSC, Property

charter than opportunities

• Gate keeper in companies

• Decisions on perception

rather than facts.

• Lack of investment in under -

developed areas.

• Limited investment in skills

and enterprise development.

GPF BACKGROUND

• GPF: A Schedule 3C Provincial Public Entity (PPE) that was founded in 2002 as aBenevolent Trust under the Trust Properties Control Act 57 (1988).

• Shareholder/ Executive Authority: Gauteng Department of Human Settlements(GDHS).

• Independent and diverse Board of Trustees whose non-executive members areappointed by the Executive Authority; striving at all times to comply with the principlescontained in the King Code on Corporate Governance in South Africa (King 3, 2009).

• The Board is the Accounting Authority in terms of the PFMA and providesstrategic direction and leadership to enhance shareholder value and ensure the GPF’slong-term sustainable development and growth.

• In fulfilling its responsibilities, the Board is supported by the Chief ExecutiveOfficer and Executive Management Team in implementing the approved strategicand corporate plans and policies.

• At the time of its establishment the GPF was given the specific mandate tonormalise the social housing market in Gauteng through innovative fundinginterventions that would provide better gearing for private commercial funding, thusattracting private bank capital into this market.

GPF BACKGROUND

• The fundamental business of theGPF is to leverage funding fromexternal senior funders. Thistranslates into a value propositionthat has and continues to seek to offerthe market innovative funding productsdesigned to provide the first layer ofcapital, very favourably priced relativeto market, to enable senior funders,particularly commercial banks andDevelopment Finance Institutions(DFI’s), to mitigate their financing risk.

• The GPF’s targeted gearing ratio is30: 70 (GPF Funding: LeveragedFunding), although this ratio isextended to 40% GPF funding forcertain products and up to 100%funding for projects of R10 million orless.

Government

GPF

Finance Institutions/

Private sector

•DLGH

•Municipalities

•Agencies/ public institutions

•Facilitation / Packaging

•Mobilizing Funding

•Funding

•Banks

•DFI’s •Developers – contractors,

professionals etc.

GPF ROLE

GPF BACKGROUND

GPF Mandate Evolution Timeline:2

00

2 M

an

da

te

Social Housing

20

08

Ma

nd

ate

Affordable Housing

20

16

Ma

nd

ate

All Human Settlements

GPF MANDATE & ROLERevised MandateThe GPF is to serve as the financing vehicle of the GDHS to leverage additional revenue for all human settlement developments (not just social and affordable housing).

Revised Role• Project funding packaging, through the development of bankable feasibility studies

and innovative funding interventions as a mechanism to entice capital market investment;

• Fund raising and Investment facilitation, through the formation of partnerships with local and international donors and development finance institutions to address funding shortfalls for the massification of the sustainable humans settlements development programme;

• Project financing, through an equitable risk sharing model. Serving as a catalyst to ensure that other funding sources are enticed to participate in funding;

• Project Management, to provide an oversight and monitoring role for mega projects. This is to ensure delivery of housing units in an integrated approach;

GAUTENG PARTNERSHIP FUND ROLE

Government

GPF

Finance Institutions/

Private sector

• DLGH

• Municipalities

• Agencies/ public institutions

• Facilitation / Packaging

• Mobilizing Funding

• Funding

• Banks

• DFI’s • Developers – contractors,

professionals etc.

GPF MARKET INTERVENTIONSFinancial product Purpose

Rental Housing Fund To enhance the viability of investment into affordable

housing by rental developers/ entrepreneurs.

Entrepreneur

Empowerment Property

Fund Programme

This is an incubator programme designed to enable

sustainable entrance of HDI owned companies in the

affordable rental property market. (The programme is limited

to prospective participants invited on public tender annually).

Social Housing Fund To enhance the viability of investment into affordable

housing by Social Housing Institutions. This is linked to

government institutional subsidy funding.

Student Housing Fund To enhance the viability of investment into affordable

housing for students by rental developers/ entrepreneurs.

Facilitation of Mixed

Income Housing

Developments

(opportunity)

To develop optimal funding structure and raise

appropriate funding for human settlements projects.

Stra

teg

ic pa

rtne

rship

s with

fina

nce

institu

tion

s

Affo

rda

ble

Ho

usin

g R

en

tal A

ccom

od

atio

nM

ixed

Ho

usin

g

14

GPF INVESTMENT PROCESS

Project Investment Process

Deal origination

-New business development

-Client relationship management

-Deal flow management

Project Assessment

-Investment evaluation

- Viability & Feasibility analysis

-Technical assessment

-Investment criteria

-Credit analysis

Risk Management

& Controls-Credit risk pricing

-Liquidity risk

-Concentration risk

Other risks

Investment Administration

-Reporting on Investments

-Investment monitoring

-Contract monitoring

Board Investment Committee – meets every fortnight or adhoc

Board of Trustees – meets every 6 weeks

GPF INVESTMENT CRITERIAMandate fit – the affordable housing project should cater for households with income <R18 000

Strategic fit – does the project fit or contribute to GPF strategic direction

Policy fit – maximum 30% contribution by GPF and balance from a senior funder

Alignment to government planning or funded projects – i.e. IDP’s and urban renewal initiatives.

Socio economic development – does the project have developmental impact– Job creation– Poverty alleviation– Increase procurement of goods & services for SMME’s

Technical aspects – design, costs etc.

Financial Sustainability – cashflows, financial ratios etc.

TYPICAL PROJECT FUNDING STRUCTURE EXAMPLE

Project located in Kempton park Erf 223, land zoned residential 4 and can yield 35 housing units.

Project Cost Funding Structure

Item Rand

Land 1,000,000.00

Construction Cost 10,000,000.00

Professional Fees 1,500,000.00

Contingencies 500,000.00

Other 1,000,000.00

Sub-total 14,000,000.00

VAT 1,960,000.00

Total Project Cost 15,960,000.00

Item Rand

%

Funding

Equity Contribution 1,596,000.00 10%

GPF Debt 3,192,000.00 20%

Senior Debt 11,172,000.00 70%

Total 15,960,000.00 100%

Financial RatiosIRR on Cash flow after tax for 20 years 9%

NPV on Cash flow after tax at WACC of: 5% R 19,000,000

ROI on Op's surplus ROI on EAIT

Return on Total investment year 3 10% 7%

Return on Total investment year 5 13% 8%

Debt Cover ratio year 3 1.3

Debt Cover ratio year 5 1.4

Debt equity ratio 90%

Loan to value ratio 80%

Cost : income ratio 25%

WHY EMPOWERMENT FUND?

• Constraints to entrance by BEE entities:• Understanding opportunities in the sector – careers, business and job

creation opportunities in the property sector are not well understood by HDI’s. Most HDI’s are passive investors as individuals or BEE companies.

• Exposure – a few people are in the property or building industry that are willing to take the risk in the affordable rental market.

• Equity - Lack of equity to contribute towards a project or assets as security of loan

• Competition for stock – they cannot compete for buildings as they have no capital (equity for deposit) and are outside the network

• Capacity – to negotiate price, evaluate (feasibility), packaging projects for financing

• Financing – banks are wary of first time property developers• Commitment – it takes a long time to prepare and tie up required project

finance and realise returns.• 94 companies under the incubation programme. 43% are owned by

women and youth. Over R552 million funding committed.

EMPOWERMENT PROPERTY FUND

• GPF has established an Entrepreneur Empowerment Property Fund that will focus exclusively on promoting BEE developer participation in the rental property market.

• The Fund seeks to promote BEE entrepreneurship through the medium of ownership of a residential rental portfolio.

• Why an Entrepreneur Empowerment Property Fund?

WHY EMPOWERMENT FUND?

• GPF had committed approx. 2.5% funding to BEE companies in 2009, which was insignificant in our view.

• GPF considers BEE driven affordable housing projects with more flexibilityin comparison to established companies but with limited success.

• Although the property charter has been enacted – transformation of the industry is extremely slow.

• In general, affordable housing developers (especially for rental) are few and mostly white owned companies.

• Black applicants face a myriad of challenges or constraints. Therefore we have adopted a holistic approach to promoting BEE participation.

WHY EMPOWERMENT FUND?

• BEE entities constraints in entering residential property market:

• Understanding opportunities in the sector – careers, business and job creation opportunities in the property sector are not well understood by HDI’s. Most HDI’s are passive investors as individuals or BEE companies.

• Exposure – a few people are in the property or building industry that are willing to take the risk in the affordable rental market.

• Equity - Lack of equity to contribute towards a project or assets as security of loan

• Competition for stock – they cannot compete for buildings as they have no capital (equity for deposit) and are outside the network

• Capacity – to negotiate price, evaluate (feasibility), packaging projects for financing

• Financing – banks are wary of first time property developers• Commitment – it takes a long time to prepare and tie up required project

finance and realise returns.

EMPOWERMENT PROPERTY FUND

• GPF has identified 100 HDI participants for the fund as per selection criteria above.

• Each company will have access to an interest free loan funding to a max of R2million. This will cover project technical support ie. NHBRC and professional fees, mentorship programme, training etc.

• The Fund assists companies to fund the property acquisition renovation or conversion or greenfield housing projects in Gauteng.

• GPF has a dedicated programme manager for the Fund. We have also established a help desk that provides support with deeds search, GIS info type of requirements.

• External resources are also be sourced for due diligence ie. Valuer, QS, structural engineer etc.

WHO ARE WE TARGETING?

• Companies with 100% HDI/BEE ownership

• Unencumbered and available equity of a minimum of R450 000

• At least one shareholder that is full time on the business venture

• Individual/s with business acumen and entrepreneurial flair withexposure to the property market

• Able to demonstrate practical skills of developing a business casefor a rental housing project

EEPF TRAINING PLAN

Year 1– Induction program

• Property investment 101– Feedback / Workshop

• Town planning, design etc.– Workshop /Training

• Social Responsible Investment etc.Year 2– Training program

• Project management– Feedback / Workshop

• Property management – Workshop /Training

• Small Business administration

We allocate dedicated Mentors to each company for 24months !

EVALUATION CRITERIA

Item Activities Weight

1 BEE 20%

2 Equity contribution 20%

3 Institution / Company information 2.5%

4 Market analysis 7.5%

5 Risk Analysis 7.5%

6 Project analysis 20%

7 Management 7.5%

8 Property Management 5%

9 Project Location (outside Johannesburg metro) 10%

Total 100%

INVESTMENT GUIDELINES

• Project must be located in a precinct or suburb identified by Metro /Council for rehabilitation.

• Projects with 15 units and more with a min of 80% of the units as residential. No student accommodation will be undertaken initially.

• Project should cater for household with income below R18 000. Rentals charged must be comparable to market related or at least 10% below market related.

• The project must be located within 10km of the CBD and be close to amenities i.e.. SOWETO Jabulani CBD.

INVESTMENT GUIDELINES

• The project must be self sustaining from cash flows post construction.

• Loan to value cannot exceed 100%

• Interest rate – min JIBAR +50 basis

• Moratorium – on interest payment over construction period• Loan term – 15 – 20years

• Exposure – 100% acquisition of property, converted to 30% of long term debt.

• Capacity funding - Interest free loan to a maximum of R2million per company

EEPF PROGRAMME - PROJECTS

Eagle Valley Properties (Pty) LtdBronkhorstspruitUnits: 40GPF funding: R15 millionTotal cost: R15 million

Lukataedi (Pty) LtdPretoria NorthUnits: 38GPF funding: R9,9 millionTotal cost: R10,5 million

Brickfields - Newtown

Mixed use – commercial

& Housing 809 units:

GPF Funding: R24million

Total cost: R120million

EEPF PROGRAMME - PROJECTS

Castle Crest Properties 80 (Pty) LtdKempton Park26 UnitsGPF Funding: R9,millionTotal Cost: R10,4 million

Cape Gannet Properties (Pty) LtdKempton Park24 UnitsGPF Funding: R3,7 millionTotal Cost:R9 million

EEPF PROGRAMME - PROJECTS

MUMA Property Investments (Pty) LtdPTA North53 UnitsGPF Funding: R7,9 millionTotal Cost: R21,8 million

Valotorque 199 CCErf 757 PTA North40 UnitsGPF Funding: R6,1 millionTotal Cost: R14,9 million

EEPF PROGRAMME - PROJECTSENTREPRENEUR EMPOWERMENT FUND CLIENTS

No Company Name Contact Person Gender

1 Ahanang Hardware and Construction Conversion CC Moira Granny Seape Female

2 Akwethu Eng and Development (Pty) Ltd Pepu Msawenkosi Male

3 Aquarella Investments 360 (Pty) Ltd Matseleng Mogodi Female

4 Azure Assets Company (Pty) Ltd Ramushu Tladi Herbert Male

5 Barivista (Pty) Ltd Rodgers Chauke Male

6 Begin All Investments Qinisani Mbatha Male

7 Beyond Build Construction (Pty) Ltd Herman Mothupi Male

8 Bixowize CC Dumani Kula Male

9 Bravo Enterprises and Projects Motaung Stanley Male

10 Bua Africa Properties (Pty) Ltd Tumi Magasa Male

11 Buhle Benjabulo Trading and Projects Anthony Gumbi Male

12 Cape Gannet Properties 175 (Pty) Ltd Lindiwe Mbongwe Female

13 Castle Crest Properties (Pty) Ltd Yusuf Gani Male

14 CICIMA Property Management Solutions (Pty) Ltd Khanyisile Makhaya Female

15 Clare Water (Pty) Ltd Ashraf Ameen Male

16 Clidet No. 1024 (Pty) Ltd Zaziwe Khumalo Female

17 CoMu Property Developers (Pty) Ltd Masha Molaudzi Male

18 DCI Holdings (Pty) Ltd Daku Xoliswa Eunice Female

19 DNM Estates CC Bereng Letswele Male

20 Due East Marketing t/a SOA Residential Village Sifiso Nkosi Male

21 Eagle Valley Properties 41 CC John Kudjoe Male

22 Emlanjeni Development (Pty) Ltd Thami Ncube Male

23 Epic Wise Trading Sethema Basiame Male

24 Epitome Property Investments (Pty) Ltd Jonas Thabana Male

25 Explore Consultants Pty Ltd Sihlahla Nomonde Female

26 Fundzo Trading (Pty) Ltd Nomvula Mdluli Female

27 FV Trading Enterprise Vusani Nemaunguhwi Female

28 GNI Real-estate (Pty) Ltd Kgomotso Nakene Male

29 Harvifusion (Pty) Ltd Sandile Luthuli Male

30 Hectorfield Pty Ltd Khoele Malose Male

31 Ifizo (Pty) Ltd Mr Lutendo Sebatha Male

32 Ikamvelihle Trading enterprises CC Veliswa Msizi Female

33 Indigo Kulani Properties (Pty) Ltd MR Buthelezi Female

34 Lavender Tree (Pty) Ltd Vuyelwa Masweu Female

35 K2014046411 (South Africa) (Pty) Ltd Mmakgomo Mokgohloa Female

36 Kimovax (Pty) Ltd Thandiwe Grunyuza Female

37 Lisinfo 282 Property (Pty) Ltd Zora Madikizela Female

38 Louching Steam Investments Nqobile Khumalo Female

39 Lukataedi (Pty) Ltd George Chauke Male

40 Luke (Mestonek) Properties Pty Ltd t/a Mestowell (Pty) Ltd Hlongwa Lungelo Justice Male

41 Madibaneng Properties (Pty) Ltd Florah Matjila Female

42 Mahlahla Advancement Makofane Tumisho Male

43 Makabongwe Property Maseko Calvin Male

44 Maziya Gerneral Services CC CF Delport Male

45 Mdakane Property (Pty) Ltd Dumisani Mdakane Male

46 Mdomula Family Trust t/a Masisizane Group (Pty) Ltd Nompumelo Ncube-Daka Female

47 Metamorph Consulting and Project Services cc Shabir Nazeer Male

48 Michaelson Investments (Pty) Ltd Mpho Ronald Monama Male

49 MJT Consulting t/a Migeroni Trading Enterprise (Pty) Ltd Ramatsea Thanyani Male

50 Moreteng Investments (Pty) Ltd Maphefo Mohuba Female

51 Motumisheng Investments (Pty) Ltd Mamonawana Mohuba Female

52 MSX Properties 001 (Pty) Ltd Mcebo Xulu Male

53 MUMA Property Investments (Pty) Ltd Dandy Matamela Male

54 NBLR Properties Pty Ltd Lebohang Sekele Female

55 Nonkwelo Investments (Pty) Ltd Nceba Nonkwelo Male

56 Nozulu Projects and Construction (Pty) Ltd Makoloda Nomakhosi Female

57 Otlotleng Investments Pty Ltd Dube Molebogeng Female

58 Owakhe Management Services Khoza Moroesi Female

59 Oxyros 290 CC Elicia Ramushu Female

60 Phab Properties (Pty) Ltd Potlako Gasennelwe Female

61 Phahamo Developers Makhakhe Veronica Female

62 Phindi Projects CC Tsotetsi Phindile Female

63 Lakeside Development (Pty) Ltd Phindile Shangase Female

64 Prelude Trading CC Peter Selwane Male

65 Property Kalcha (Pty) Ltd Mangaliso Chris Shabangu Male

66 Ratehang Projects CC Gift Mogodi Female

67 Multidirect Investments 8 (Pty) Ltd Mary Setati Female

68 Red Door Projects (Pty) Ltd t/a Sabiglo (Pty) Ltd Lesley Padayachee Female

69 Redformationz Holding (Pty) Ltd Mankodi Moitse Female

70 Sakhazoke Investments (Pty) Ltd Sydney Sibanyoni Male

71 Sbongukfika Construction & Projects CC Mpisi Lillian Tlou Female

72 Seco Developments (Pty) Ltd Teboho Nchapha Male

73 Sethitho Projets CC Pienaar Obakeng Female

74 Shukumani Trading Enterprises (Pty) Ltd Noncedo Vutula Female

75 Siyakhazimla Consulting & Trading CC Wethu Mbambo (neeGova) Female

76 Somandla Trading 14 cc Matlala Leah Female

77 Southern Ambition 453 Pty Ltd Nkambule Mageza Male

78 Stance Marketing cc Kholofelo Duba Female

79 Storm Strong (Pty) Ltd Onnica Monnakgotla Female

80 Striving to Satisfy Trading Gumbi Khehla Male

81 Take Shape Properties (Pty) Ltd Solomon Ramalamula Male

82 Tawana Business Projects (Pty) Ltd Malebo Magasa Female

83 Thoho Property & Development CC Nemukula Lufuno Female

84 Tsebo Consumable Supplies CC Dennis Marodi Male

85 Tumaini Properties and Real Estate Lese Matlhape Male

86 Urban Kraal Properties (Pty) Ltd Neo Mokhobo Female

87 Valotorque 199 CC Silindiwe Sibanda Female

88 Vuttomi Group (Pty) Ltd Nonhlanhla Ditshego Female

89 XTLS Investments 189 (Pty) Ltd Motsamai Mofokeng Male

90 Simelani Business Solutions (Pty) Ltd Daniel Simelani Male

91 Zakhele Investments Themba Buthelezi Male

92 Yiga Matenji Construction Projects CC Simon Yiga Disqualified

93 Zwide and Dewa Investments (Pty) ltd Gugulethu Gladys Nxumalo Disqualified

94 Alkara 7 (Pty) Ltd Sibambisandla Nyubuse Disqualified

95 KLMS Property Molema Kgaogelo Disqualified

96 Ludwe Consulting Siphokazi Mphala Disqualified

97 RI Maurkeng Construction CC Ali Komane Disqualified

98 Take Off Real Estate (Pty) Ltd Murad Ismail Disqualified

99 Landopoint (Pty) Ltd Thembakazi Bashe Disqualified

0

20

40

60

80

100

Companies Males Females

9146 45

Companies

Males

Females

EEPF Companies Gender

Distribution

EEPF PROGRAMME- NEWS PAPER ADVERT

THINKING OF INVESTING IN THE AFFORDABLE RESIDENTIAL

PROPERTY MARKET? CONSTRAINED BY FUNDING CHALLENGES?

The Solution The Gauteng Partnership Fund (GPF) is the ideal partner for companies seeking to develop affordable residential

properties for rental to cater for households with income up to R15 000.

Who Are We? Motivated by the Gauteng Department of Local Government and Housing’s mandate to accelerate the provision of human settlements, the GPF has leveraged over R2, 2 billion in private sector funding for developers and

investors in the affordable housing market. The GPF continuously seeks strategic partnerships with public and

private institutions for affordable housing market interventions.

Opportunity To partner with GPF by participating in a dedicated Entrepreneur Empowerment Fund Programme that aims to

assist emerging black owned companies to enter the affordable housing rental market. The GPF wants to hear

from you. You may have aspired to enter the affordable housing rental market before, but been unable to start or

grow. Now you can.

Criteria If you are a legal entity with:

• BEE/HDI ownership of the entity – Level 1-4 status. Preference will be given to black applicants as per the

definition in the BBBEE Act;

• An interest in catering to affordable housing rental market (household income up to R15 000);

• A potential walk up project that can yield over 15 affordable housing units in Gauteng. Projects located in

under developed areas or Townships will be considered favorably; and

• That can demonstrate access to unencumbered capital as sponsors equity contribution required towards a

project of approximately R15 million value; Letters showing equity contribution from institutional investors

will not be considered;

• If you meet all the above broad criteria, then kindly collect a business plan framework as a guide for

application from our offices or request for a copy from info@gpf.org.za. For more application

documentation queries, please contact GPF on 011 685 6600 or visit our website on: www.gpf.org.za.

All applications are to be submitted by 30

th of October 2012 before 4:30pm at our offices, 82 Grayston Drive,

Sandton.

EEPF AWARDS

GPF PERFORMANCE 2003–2014 (MARCH YEAR END)

• Over the past 11 years GPF has committed funding for projects to a value close to R1billion leveraging over R2 billion of private and public sector funding in social rental housing projects.

• This has facilitated approximately 22 000 housing units and funded over 16 000 completed units.

R 0

R 50 000 000

R 100 000 000

R 150 000 000

R 200 000 000

R 250 000 000

R 300 000 000

R 350 000 000

R 400 000 000

2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

R 0R 54

R 68, R 66 000 000R 76

R 54 R 40 R 42

R 80

R 185

R 252R 290

R 140

R 11,7

R 52

R 109 R 103R 84 R 87

R 5,9

R 68

R 161

R 177

R 283

R 385

R 195

GPF Performance 2003 - 2015

Series1 Series2

RENTAL HOUSING ECONOMIC IMPACT

The Economic Impact of providing rental housing

Capital Expenditure Operational Expenditure

DIRECT

Construction

INDIRECT

Construction

Manufacturing

Finance

Business

Services

DIRECT

Maintenance

Management

INDIRECT

Manufacturing

Finance

Business Services

Classifying the economic impact of developing housing [Francois Viruly 2014]

Construction related employment opportunities estimated over the period at Approx. 37 000 people (15 000

completed housing units)

On – going operational employment opportunities estimated over the period at Approx. 2 700 people (15 000

completed housing units)

LOCATION OF GPF APPROVED PROJECTS

Gauteng Map

Jabulani CBD – Soweto(Bolani Road – Soweto, Johannesburg)

GPF CURRENT STRATEGIC PARTNERS

38

Overview of the Proposed Fund

• The Fund will be structured as a limitedpartnership fund.

• The targeted Fund size is R1 billion, with afirst closing target of R500m.

• The Fund shall be managed by GPF/SPVFund Manco, in accordance with an agreedSLA.

• The investors will provide the investmentfunding for the Fund, from which the FundManager will make investments.

• The Fund will provide debt and equitycapital to greenfield and brownfieldaffordable housing projects.

Fund Structure

PRIVATE EQUITY FUND - EMPOWERMENT

HUMAN SETTLEMENT MEGA PROJECT

Human

Settlement

Mega

Project

FUNDINGHousing

Water &

Sanitation

Electricity

Transport

EnvironmentSocial

Land

Economic

KEY COMPONENTS OF MEGA PROJECT FOR THE

CITY REGION

• Housing

• Commercial Property – offices, retail, Light

Industries

• Roads

• Open Public Spaces & Landscaping

• Trader Stalls

• Transport

• Taxi Ranks, Bus and Train Stations

• Bulk Infrastructure

• Broad Band Connectivity

• Energy and Electricity

• Businesses

• Filling Stations

Mega Project : Fleurhof Development – Roodeport

BUILDING SUSTAINABLE PARTNERSHIPS

Our slogan:“Leveraging Affordable Housing Finance”

Thank you !