MESSAGE FROM THE CHAIRMAN OF THE GPF BOARD Mr. PakiE

GPF NEWS
Join us on this
Social Network
External Newsletter l Issue 04 l Jan - March 2014
Inside
This
Issue
Pg. 02
Pg. 03
Pg. 04
Joint Rental
Housing
Advertorial
The Student
Accomodation
Fund (SAF)
Leveraging
affordable
housing finance
advertorial
Message from the Chairman of THE GPF Board
Mr. Pakie Mphahlele
The Gauteng Partnership Fund (GPF) Chairman of the
Board of Trustees, Mr Pakie Mphahlele are pleased to
announce the appointment of Mr Boni Muvevi as the new
Chief Executive Officer (CEO) of GPF.
Boni was appointed the Chief Investment Officer (CIO) of
GPF in 2004 and had also been the acting CEO leading up
to this appointment.
Pakie
Mphahlele
Chairman of the Board
He is an active member of the GPF Executive Committee
and Senior Management Team. In his role as CIO, he has
established many product offerings, as well as sustainable
initiatives for the affordable housing market.
Boni has over 15 years of construction and property industry experience and holds a BSc
QS from the University of Natal, a Diploma in Project Management and an MBA from the
University of Pretoria (Gordon Institute of Business).
He has worked for large construction and finance companies, namely Group Five, African
Bank (contractor finance), ABSA Barclays Bank (commercial property finance). He has led
and managed astute residential property investments for various institutions including
GPF.
Boni
Muvevi
CEO of GPF
As Head of the project team, GPF has benefited immensely from his technical and
commercial property finance experience. He has achieved notable results, reflected by
the GPF’s performance in a challenging housing finance environment over the period.
The GPF Board of Trustees are confident that with his appointment, GPF now has both the leadership and the
capacity to build on its existing strengths and develop a new direction that will ensure future sustainability and
growth in the affordable housing market.
Kind Regards
Pakie Mphahlele
Chairman of the Board
1
THINKING OF INVESTING
IN AFFORDABLE RENTAL HOUSING
OR STUDENT ACCOMMODATION
IN GAUTENG?
CONSTRAINED BY FUNDING CHALLENGES?
The Solution - The Gauteng Partnership Fund (GPF) is the ideal partner for
companies seeking to develop affordable rental housing as well as student
accommodation.
An opportunity exists to access funding from a dedicated Rental Housing
and Student Accommodation Fund that aims to assist developers with
equity type loans in the affordable housing market. The GPF equity type
loans enhances the bankability of projects, encouraging senior funders to
participate.
For more information or
to apply for funding contact:
Maki: Tel - 011 685 6600 or
Email: [email protected]
www.gpf.org.za
2
Back to top
The Student Accommodation Fund (SAF)
Introduction
The Gauteng Partnership Fund (GPF) was founded by The Gauteng Department of Housing in 2002 as
a mechanism for mitigating risk faced by private sector funding institutions in financing affordable housing
developments in the province. The GPF funding model introduces a public risk capital strategy that assumes a first
lost position. The GPF funding instrument therefore has a character of equity but in a form of a subordinated debt.
The GPF plays a facilitation and funding coordination role between government and private sector. We translate
government needs into a financial language that investors can understand. We ensure the level of financial risk
sharing is balanced or appropriate for housing projects across all public and private investors.
Background
Research shows that the student
accommodation market bucked
the economic downturn. In the past
few years South Africa’s Student
accommodation market has emerge as a key asset class. This sector has
attracted growing interest from investors, developers and private
operators countrywide.
Student numbers have climbed
significantly in recent years. The swift
development of South Africa’s middle
class, rapid urbanisation and the influx of approximately 72 000 foreign students, mainly from Africa, have left tertiary institutions unable to house all their students.
Recent figures from the education
department show that student housing
in residences currently provides for
approximately 100 000 students, but the
student population is 530 000.
This means that, on average, fewer than
20% of students will find accommodation
on campus.
The lack of funding for tertiary
institutions has created lucrative
opportunities for a small number of niche developers and private property companies.
They are taking advantage of the
opportunity presented by the high
demand and low supply in the student
accommodation market. Due to
the serious shortage of residence
accommodation for university
students in South Africa, the private
sector is a potentially key role player
in the provision of student housing.
International research indicates that the majority of university students are accommodated in private student
housing. Students’ living conditions play a significant role in their
overall performance.
• The overwhelming demand for student accommodation inevitably
leads to abuse
The private sector is a significant
contributor and stakeholder in the
provision of accommodation to university students in South Africa, as is the case internationally.
• GPF can facilitate SMME and BEE
companies into the sector in line with
governments mandate
The recently released Department of
Higher Education and Training (DHET)
report on the review of the provision
of student housing at South African
universities confirms that the tertiary
institutions have delivered minimal new
stock of student accommodation.
The reasons thereof vary from the lack of
funding to the fact that the provision of
student accommodation is not regarded
as the core function of the university and
therefore not prioritised.
GPF’s Intervention
GPF’s role is seen as strategic as GPF
fulfils the role of government with regard
to interaction with the private sector
and furthermore GPF’s existing primary
mandate is to promote rental housing.
GPF deems it prudent to intervene in the
student accommodation because:
• Student accommodation is a sub
sector of rental housing and within the
domain of GPF’s mandate
• Students compete for accommodation
with GPF’s target market any way
• GPF’s financial intervention can lead
to reduced rentals if the weighted
average cost of funding is reduced
• GPF can facilitate well managed and
quality accommodation to students
GPF’s primary intervention will be
in keeping with our core function of
providing funding to the sector.
Thus GPF will engage in an extensive
marketing campaign to create
awareness of GPF’s additional focus.
GPF’s secondary intervention is to liaise
with the various stakeholders, like the
Department of Education and Higher
Learning institutions, and facilitate the
delivery of student accommodation on
their behalf.
The Student Accommodation
programme will be a stand-alone Fund.
The rationale being that the Student
Accommodation Fund will be developed
for entrepreneurial rental housing
institutions that require GPF’s assistance
to ensure the feasibility of the project.
The GPF subordinated loans to these
for-profit entities enhances the debt to
equity ratio for their projects to enable
senior lenders to finance on more
favourable terms.
Back to top
3
Leveraging affordable
housing finance
Gauteng Partnership Fund is a partner of choice in the mobilisation and facilitation
of funding for the delivery of affordable housing.
82 Grayston Drive, Benmore, Sandton 2196,
South Africa | Tel: 011 685 6600 | Fax: 011 685 6696
www.gpf.org.za | [email protected]
GPF A4Advert_Affordable Housing_FA.indd 1
4
Back to top
2013/11/04 2:18 PM

Download Report