PRESENTATION SAIBPP ANNUAL microfinance • Social investment – sustainable society Realities of limitations and challenges: • Not enough capital available ...

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  • 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 GPFslong-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(DFIs), to mitigate their financing risk.

    The GPFs 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

    DLGHMunicipalitiesAgencies/ public

    institutions

    Facilitation / PackagingMobilizing Funding Funding

    BanksDFIs 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 DFIs 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 adhocBoard of Trustees meets every 6 weeks

  • GPF INVESTMENT CRITERIAMandate fit the affordable housing project should cater for households with income

  • 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 HDIs. Most HDIs 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 HDIs. Most HDIs 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 !

    http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.smallbusinessconnect.co.za/feature/new-growth-plans-economic-zones.html&ei=3UQRVdipK-HR7QbpuYDwBA&bvm=bv.89184060,d.d24&psig=AFQjCNHY3nCEFlazOyv3gLFjCPcZdSqmLQ&ust=1427281507991819http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.smallbusinessconnect.co.za/feature/new-growth-plans-economic-zones.html&ei=3UQRVdipK-HR7QbpuYDwBA&bvm=bv.89184060,d.d24&psig=AFQjCNHY3nCEFlazOyv3gLFjCPcZdSqmLQ&ust=1427281507991819

  • 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 Housings 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 20032014 (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

    http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.fmessentials.com/ourguides/bee-business-guide/property/property-management/city-of-joburg-property&ei=P0ERVZHNB4jxUKyvhOAL&bvm=bv.89184060,d.d24&psig=AFQjCNFWrZsnsnyqdUoJ1X6xbdKgfe0jBg&ust=1427280541783103http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.fmessentials.com/ourguides/bee-business-guide/property/property-management/city-of-joburg-property&ei=P0ERVZHNB4jxUKyvhOAL&bvm=bv.89184060,d.d24&psig=AFQjCNFWrZsnsnyqdUoJ1X6xbdKgfe0jBg&ust=1427280541783103http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/City_of_Johannesburg_Metropolitan_Municipality&ei=aUMRVfvYNIKAU8TpgZgB&bvm=bv.89184060,d.d24&psig=AFQjCNGAZaG2-458b6g3nZ9sifFnverHjA&ust=1427281134863964http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/City_of_Johannesburg_Metropolitan_Municipality&ei=aUMRVfvYNIKAU8TpgZgB&bvm=bv.89184060,d.d24&psig=AFQjCNGAZaG2-458b6g3nZ9sifFnverHjA&ust=1427281134863964http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.crwflags.com/fotw/flags/za-gt-ek.html&ei=jEMRVcDaBYXWUZbHg9gD&bvm=bv.89184060,d.d24&psig=AFQjCNGAZaG2-458b6g3nZ9sifFnverHjA&ust=1427281134863964http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.crwflags.com/fotw/flags/za-gt-ek.html&ei=jEMRVcDaBYXWUZbHg9gD&bvm=bv.89184060,d.d24&psig=AFQjCNGAZaG2-458b6g3nZ9sifFnverHjA&ust=1427281134863964http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.smallbusinessconnect.co.za/feature/new-growth-plans-economic-zones.html&ei=3UQRVdipK-HR7QbpuYDwBA&bvm=bv.89184060,d.d24&psig=AFQjCNHY3nCEFlazOyv3gLFjCPcZdSqmLQ&ust=1427281507991819http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.smallbusinessconnect.co.za/feature/new-growth-plans-economic-zones.html&ei=3UQRVdipK-HR7QbpuYDwBA&bvm=bv.89184060,d.d24&psig=AFQjCNHY3nCEFlazOyv3gLFjCPcZdSqmLQ&ust=1427281507991819

  • 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 !

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