AGM Presentations Links;
1. Cote d’ivoire presentation-french
2. NHC Tanzania presentation-french
3.Chad presentation-french
4. Cote d’ivoire presentation-english
5. South africa presentation-english
11 January 2013, Nairobi: Shelter Afrique, the pan-African finance institution dedicated to financing affordable housing across the continent, has confirmed the first close of the Pan African Housing Fund (PAHF), at US$ 41.5 million in December 2012.
PAHF is the first private equity fund focused exclusively on housing development in Africa (outside of South Africa), providing equity and quasi equity finance to developers, and was specifically designed to respond to an ever growing housing shortage in Eastern and Southern Africa. The Fund is targeting a final close of US$ 100 million in 2013.
Launched in 2011, Shelter Afrique has outsourced PAHF’s management to Phatisa and worked closely with a pool of African and European development finance institutions (DFIs) during the fundraising stage.
Alassane Ba, Shelter Afrique’s Managing Director, commented on the first close: “Shelter Afrique is proud to have ended 2012 with the successful first closing of The Pan African Housing Fund. The PAHF will fill the risk capital gap, which is our scarcest financial resource, and we see this as a key strategic investment toward improving the supply of affordable housing in Africa.”
The Fund will invest in middle income and lower-middle income residential developments and mixed-use real estate projects, where both residential and commercial properties are combined.
It will be investing primarily in the major urban areas in Kenya, Uganda, Rwanda, Tanzania, Mozambique and Zambia, with a focus on mitigating environmental, social and governance risks. The PAHF will also work closely with developers to increase both their technical and scale capabilities.
Kenya-based urban development financier Shelter Afrique plans to invest $80 million in east Africa this year, looking past immediate concerns about inflation and high interest rates to long-term demand for housing from middle-income buyers.
Managing director Alassane Ba said on Friday his firm will sign a loan agreement worth $40 million with Tanzania’s state-run National Housing Corp in March to build homes in that country.
Shelter Afrique also plans to invest $10 million in low-cost housing in Rwanda and $30 million in equity stakes with property developers in Kenya, the region’s biggest economy.
The company is also searching for investment opportunities in Uganda, but had not allocated any specific amount for the land-locked coffee producing country.
“Inflation and high interest rates are short-term concerns, but we’re still looking for investment opportunities in the housing market in this region,” Ba told Reuters.
“These challenges are temporary. The housing market is just under a small adjustment and it’s the best time to invest.”
Year-on-year inflation rates in the east African nations of Kenya, Tanzania and Uganda rose sharply last year to double-digits driven by high oil prices on the global market and weak local currencies.
An aggressive tightening of monetary policy in Kenya and Uganda have helped ease inflation in those two countries, but has left mortgage holders grappling with extremely high interest rates.
Commercial banks in Kenyan have raised lending rates to about 25 percent from 15 percent since October, prompting lawmakers to propose a new law to cap the rates.
In Uganda, traders closed their businesses in January in a three-day strike to force banks to stop raising rates which had soared to 29 percent from 19 percent in a few months.
Shelter Afrique, which raised 2.5 billion shillings through a medium-term loan in August, said it intends to lend the funds to developers at a base rate of 13 percent, nearly half what commercial banks are offering at the moment.
“The target market for the funds will be the middle income segment where demand for housing is insatiable,” Ba said.
The regional lender, which is jointly owned by 42 African governments, the African Development Bank and African Re-Insurance Corporation, raises most of its hard currencies from the international capital market.
It has extended about $124 million in credit to private developers in Kenya’s real estate market since inception in 1995 and is in negotiations that could see the Chinese government buy a stake in the company.
“With the (economic) slowdown we are witnessing in the rest of the world, all money is coming to Africa. It’s the best time for Africa,” Ba said.
After Ghana adhesion to Shelter Afrique as its 43rd member country and a Class “A” Shareholder during the 30th Annual General Meeting held in Nairobi, Kenya, Shelter Afrique organized a 5-day mission to Ghana.
The mission’s objective was two-fold; business development and signing a Loan Agreement between Ghana Home Loans and Shelter Afrique.
As part of the business development, Shelter-Afrique’s delegation met with the President of the Republic of Ghana, His Excellency Professor John Evans Atta Mills to whom the Managing Director of Shelter-Afrique Mr. Alassane BÂ briefed on the institution’s investment plans and different aspect of partnership to accelerate the ongoing efforts to address housing need in Ghana .
Shelter Afrique also used this opportunity to host a dinner for the developers and other stakeholders involved in the housing sector.
On the other part, the US$ 5 million Line of Credit signed Agreement between Shelter Afrique and Ghana Home Loans makes the mortgage institution the first Ghanaian entity to benefit from Shelter-Afrique facilities.
The loan is to go towards support to delivery of affordable housing in the country.
The workshop was organized jointly by Shelter Afrique and FMO and was aimed to build capacity for African Developers involved in Housing Development. The workshop was well attended by all the stake holders in the industry and came up with very valuable recommendations.
Nairobi, 31st October 2012 – The Government of Ghana has made an additional payment of US$3.14 million on account of the institution’s capital subscription. With this payment, Ghana now becomes the second largest Member State Shareholder of Shelter Afrique with 11.26% shareholding.
Ghana became Shelter Afrique’s 43rd Member State Shareholder in 2011. The increase in capital subscription is a clear demonstration of the country’s support and confidence in Shelter Afrique’s objectives. The institution will leverage on the increased capital base to expand its investments in Ghana and the continent in general.
Within the short time that Ghana has been a shareholder, Shelter Afrique’s Board of Directors has approved investments valued at US$ 17.7 million. Out of this, US$ 4 million will go towards construction of 116 housing units and associated infrastructure while US$ 13.7 million is aimed at mortgage origination which will see over 140 Ghanaian families access long term mortgages. A pipeline of more investment opportunities and housing schemes are currently under review and it is hoped that, upon conclusion, these investments will go a long way in addressing the housing gap evident in the Ghanaian housing market.
Shelter Afrique’s management applauds the support from the People of Ghana.
Nairobi, 15th October 2012 – Shelter Afrique Board of Directors held its 96th Meeting in Nairobi Kenya on Monday, 15th October 2012. During the meeting, six transactions with a total loan value of USD 35.5 million were approved:
Nigeria: Coop Property Development Ltd – Loan Approved, USD 7.8 million
The funds will be used to support the construction of 287 housing units and associated infrastructure in Lugbe 1 Extension, Abuja. The project is collaboration between Coop Savings and Loans Ltd, Coop Property Development Ltd and Society for Health Multi-Purpose Co-operative Society, whose members will be the principal off takers. The objective of this project is to deliver affordable housing to the Cooperative Society members who have pulled together resources to achieve a common purpose. Shelter Afrique is proud to be associated with this initiative.
Kenya: Sunset Paradise Apartments Limited-Loan Approved, KSHS 380 million (equivalent USD 4.6 million)
The facility will be used to support Sunset Paradise Apartments Limited to construct 80 units of 2 bedroom and 3 bedroom apartments and related infrastructure services in Shanzu-Serena area, Mombasa Municipality for outright sale to the public.
Kenya: Maha Properties Limited-Loan Approved, KSHS 476 million (equivalent USD 5.8 million)
The facility will be used to support construction of 150 units of four bedroom townhouses and related infrastructure services in Kiambu for sale. The transaction will be co-financed with other lenders including Housing Finance and the Industrial and Commercial Development Corporation (ICDC). The transaction is in line with Shelter Afrique’s strategy of supporting eligible developers through risk sharing arrangements with other financial institutions.
Mozambique: Joint Venture (CAL/SDDL) – Loan Approved, USD 8.5 million
True to its objective of being the leading player in strategic partnership among key stakeholders in the efficient delivery of real estate and other related services in Africa, SHELTER-AFRIQUE is embarking on setting its first foot print in the Mozambican real estate market. The recently approved facility for the development christened, Djuba Project, will go towards co-financing the development of 150 nos 3-br bungalows and related infrastructure in Djuba area, Matola, Mozambique. Going forward, the Company envisions increasing its presence in the country’s housing sector.
Democratic Republic of Congo: Devimco SPRL – Loan Approved, USD 2.7 million
The loan will be used to construct of a 6-storey building comprising of 20 apartments for sale and rental in Kinshasa. Devimco SPRL is a Shelter-Afrique repeat client and has been a key stakeholder in three successful projects co-financed by Shelter-Afrique in DRC namely, “Le Concorde”, “L’Ambassadeur” and “Building Bloc I”.
Ivory Coast: INTERBAT “Résidences Arcades- 4” – Loan Approved, FCFA 3.2 billion (USD 6.1 million)
The funds will be used to develop a residential estate comprising 115 residential units of 4-bedrooms duplex and related infrastructure in Cocody District (Djiby) – Abidjan for outright sale to the public. This project is the first investment of Shelter-Afrique in Ivory Coast since it became a Member State of the Pan-African Housing Finance Institution in June 2012. The project will enable Shelter-Afrique to build capacity of one of the local developers and have a foot print in the biggest economy in the WAEMU (West African Economic and Monetary Union) zone.
Nairobi, Kenya 09th October, 2012 – SHELTER AFRIQUE and CHIEDO DEVELOPERS LTD have signed a KShs 205 million loan agreement. The funds are earmarked to co-finance a furnished housing development, Lake Breeze Apartments, comprising forty-eight (48) nos 1 & 2 bedroom units in Kisumu, KENYA.
Chiedo Developers Ltd (CDL) is a special purpose vehicle company incorporated on 13th October, 2009 to carry out real estate development. Its shareholding comprises family members’ intent on venturing into the Kenya real estate market in a bid to contribute towards meeting the housing deficit in the country.
Nairobi, Kenya, 9th October 2012 – Shelter Afrique and Ujenge Rwanda Ltd have signed a USD 6,500,000 loan agreement. The funds are earmarked to co-finance the development of Palm Estate in Kigali, Rwanda.
The signing ceremony took place on 9th October 2012 at Shelter-Afrique Centre, Nairobi. Shelter Afrique was represented by its Managing Director, Mr. Alassane Bâ and Ujenge Rwanda Ltd was represented by its Managing Director Mr. Patrick Sebatigita.
The Palm Estate Project, estimated to cost USD 12.6 million will be co-financed by Ecobank Rwanda. The development entails the construction of three blocks of apartments comprising of 168 units for outright sale as well as commercial and entertainment facilities for rental.
Ujenge Limited was established in Kigali, Rwanda, on May 2008. The company is involved in Management, Architectural and Technical design and construction operations. As part of its growth strategy, Ujenge is now engaged in Property Development, and the current Palm Estate Project is among the company’s initiatives in this respect.
Nairobi, Kenya 27th July 2012 – SHELTER AFRIQUE and MPICO MALLS LTD have signed a South African Rand 50 million (ZAR 50 m) loan agreement. The funds are earmarked to co-finance the development of an ultra modern shopping mall, The Gateway Mall, and related infrastructure for leasing. The project is located in Lilongwe, MALAWI.
MPICO Malls Limited (MML) was incorporated in February 2010 as a special purpose vehicle (SPV) for the development of the proposed Mall. Its majority shareholder is Malawi Property Investment Company Ltd (MPICO), the biggest property investment company in Malawi.
