IHS-SA

active

The Project consists of investing in “IHS Fund II”, a ZAR2.4 billion (~US$300 million equivalent) affordable housing fund (the “Fund”) that will provide equity for the development of affordable housing projects primarily in South Africa and selectively in Sub-Saharan African countries (the “Project” ). The Fund will be managed by International Housing Solutions (IHS), through its main investment management team based in South Africa, International Housing Solutions South Africa (“IHS-SA”). This will be the second IHS fund to focus on affordable housing in South Africa, after the “South Africa Workforce Housing Fund I”, a R1.9 billion (~US$240 million) 10-year fund that was closed in 2008. IHS is one of the most important equity investors in the South African housing space. The target market will be lower-and-middle income houses priced between ZAR250,000 and ZAR800,000 (i.e. approx US$30,000 to US$100,000).The fund will focus on the following types of projects – (i) New Builds – Develop new single-family and multifamily housing, as well as related commercial real estate (ii) Conversions – Rehabilitation of existing real estate to multifamily housing (iii) Acquisition, Rental, and Sale – Transactions in single family and multifamily housing.The IFC participation in this Fund will be an investment of up to US$25 million, but not to exceed 20% of total fund size. . In addition, an up to US$10 million concessional investment from the Global Environment Facility, through the IFC Earth Fund Platform, would support the Fund making investments in green housing projects in South Africa. The Fund will seek to deliver equity type returns with a target IRR of 20%+, net of fund cost, fees and carry. By the time the Fund matures, it is expected that safe and affordable housing would have been provided to over 20,000 families.