THE PAN AFRICAN HOUSING FUND
Shelter-Afrique appointed Phatisa in 2011 to manage the Pan African Housing Fund (PAHF), a new real estate private equity fund. The Fund first closed on US$ 41.5 million end Q4 2012, commenced operation Q1 2013 and targeting a final close Q1 2014. The Phatisa team members managing the Fund have an exceptional track record in executing real estate transactions and has generated well-developed pipeline covering Eastern and Southern Africa.
INVESTMENT SECTOR AND GEOGRAPHIES
The Fund will invest primarily in affordable and middle income residential developments and mixed use precincts, where both residential and commercial are combined.
The Fund will initially target a limited set of geographies in order to demonstrate the opportunity to investors. The Fund will only execute transactions where it has the capability to execute and manage all risk aspects of the investment. Initial geographies identified are Kenya, Zambia, Rwanda, Mozambique, Tanzania and Uganda. The PAHF will be investing in the major urban areas within these geographies.
Investments outside these sectors and geographies will require special approval from the Investment Committee.
The investment opportunity arises from the shortage of housing units in Africa and an on-going increase in demand for housing. According to the East African Development Bank, the sector requires at least US$ 2.5 billion per annum for investment in Africa. The Fund has identified a number of obstacles to the development of an efficient residential market. While there many obstacles to housing delivery, the principal obstacle is a shortage of equity and loan finance. Many projects are too thinly capitalised leaving almost no margin for delays or cost over-runs and as result threaten not only the development capital introduced by the sponsor but also that of the purchaser who stands to lose his capital introduced by way of deposit finance.
The key obstacle in several markets lies in the lack of an established ‘developer class’ and the Fund will actively seek to provide risk capital and other resources to indigeneous developers in the identified geographies.
FREQUENTLY ASKED QUESTIONS
If you require more information on the Fund or have an investment proposal you would like to submit, please contact:
OUR SPONSOR AND PARTNER
Nelly Defo Head of Investment and Special Products - Shelter AfriquieEmail ndefo@shelterafrique
'The key pillar of the PAHF’s strategy is the promotion and enablement of a “developer class” that has the capabilities and resources to roll-out large scale residential developments together with chosen partners.'Eton Price, Fund Partner - Pan African Housing Fund