Investment Proposal Affordable Housing South Africa Specialised in - - PowerPoint PPT Presentation
Investment Proposal Affordable Housing South Africa Specialised in - - PowerPoint PPT Presentation
Investment Proposal Affordable Housing South Africa Specialised in African Investments Realty Africa BETONIQ Realty Africa Innovative Investment Inspiring Africa The Masters of Affordable Building Innovative Investment Inspiring Africa
Innovative Investment Inspiring Africa
Realty Africa
Realty Africa is a property crowdfunding platform providing investors with informed investment opportunities focused on Housing with Impact like Affordable and Student Housing www.realtyafrica.com
Specialised in African Investments
BETONIQ
The Masters of Affordable Building Innovative Investment Inspiring Africa
Realty Africa
Investing Creation of Partnerships Affordable Housing
Philosophy
Brand values
Creativity Community Financial Gain
The first crowdfunding Offering in Africa “Langeberg Villas” Good Quality Affordable Housing
Offering Summary
The offering on the Langeberg Villas includes:
üProperty is 80% ready üNo development Risk üOnly 50% occupancy needed to pay loans üOwner and developer: Selique Properties üOpen to all investors worldwide: https://invest.realtyafrica.com üCountry: South Africa üCity: Sasolburg close to Johannesburg üInvestment Currency: ZAR (Rand) üAmount: 3.78 Million (± 278.000 USD) üType: Loan üReturn: 10 % per annum üTerm: 3 years üPayment: Semi Annually üCollateral: Property is collateral üHedging: Currency is not hedged
10 %
Annual Return
Win Win Opportunity
3
Years
ZAR 3.78
Million
Affordable Housing 28
Units
Opento all investors Worldwide
(± 278.000 USD)
Demographic needs in Sub-Saharan Africa
"The rapidly growing economies of Africa are catching the attention of increased numbers of property investors and corporate occupiers. Africa is no longer viewed as a region of long-term economic distress, but is increasingly seen as a continent of opportunity." According to the Africa Research on the property market by Knight Frank. The full report can be found on the website of Knight Frank (http://www.knightfrank.com )
Langeberg Villas
Project Overview
Overview
The plan contains 28 units of Affordable Housing for rent AFFORDABLE HOUSING IMPROVES:
üTransition from "market" to "production" cities üPeople can be closer to their employment üEconomic development & political stability üDemand for Affordable Housing is Huge üHousing backlog in South Africa alone is 2.1
million https://goo.gl/FuykK0
Location
28
ØLocation is Sasolburg in South Africa close to Johannesburg ØThis location has a huge need for Affordable Housing and it is very easy to get good tenants ØGoogle Maps: https://goo.gl/j4ezEb
House Construction
There are many ways to construct affordable housing projects. Langeberg Villas are:
üBuild in a traditional way üOne floor apartments in rows of 5 üThe whole side will be prepared and
ready for living
Developer
28
ØThe developer and owner is Selique Properties in Johannesburg ØThe developer has much experience in developing and managing residential, student and commercial developments
More information on https://goo.gl/9i5meM
Impressions
The Investment Structure
Investment Conditions
Realty Africa offers an opportunity to invest in a three year loan to finance an complex of 28 Affordable Houses in Sasolburg South Africa. After three years the loan will be refinanced. The loan is for a total of 3.78 million ZAR (South African Rand which is (± 278.000 USD) with a yearly return of 10 % paid in Semi Annual instances and the land as collateral which has sufficient value. Hedging is an individual choice of the investor. The project has undergone a strict due diligence process and has no development risk since the buildings are almost finished and the remaining risk is sufficient occupancy. The loan will break even at 50% occupancy and the developer puts in guarantee on the rent. The fees involved are banking fees. Other fees are included in the building budget.
Governance
The Governance supports a clear and transparent ownership for debt investors.
Realty Africa has set-up a independent trust “Crowdfunding Investment (PTY) LTD” in Botswana to secure the investment for our investors. The Trust is
- verseen by an independent Trust
- fficer
We are a member of the Botswana Innovation Hub (BIH) and have approval from the local regulator.
Governance Explained
ü Why a Trust: To make sure the investors are securitised with collateral
and protected against bankruptcy of Realty Africa
ü Why Botswana: Botswana is like Mauritius, only less expensive which is
a good thing if we want to keep the costs as low as possible
ü Meaning of Collateral: The property will be used as collateral. This
means that in case of default, the property could be ceased to repay the loan.
ü Cross border effects: An investment in South Africa can be served from
an Trust in Botswana and International Investors can participate. Taxation is depending on your country of origin. Botswana has no exchange control.
Involvement of Realty Africa
ü Is working on basis of fee paid by the developer ü Has conducted a strict Due Diligence process on the project ü Accredits Investors only after a KYC process to prevent fraud and
money laundry
ü Stays involved until the end of the loan ü Monitors the asset management company ü Takes care of the payments to the Investors ü Makes sure that we have a continues flow of new investments with
similar quality Realty Africa:
Team
Patrick Chella
CEO Realty Africa
Erik van Eeten
CFO Realty Africa
Emil Bengtsson
CTO Realty Africa
MBA with many years of experience in Banking, Investment management and Africa Expert Engineer, MBA and Chartered Controller with many years of experience in Banking, Investment management and Real Estate Hard Core system developer with many years
- f development experience
Dunstan Masondo
Co-Tribal & Rural Land Development Director SA
Country Directors
HRH Lomcebo Mahlangu
Co-Tribal & Rural Land Development Director SA
Sethebe Manake
Botswana Country Director
Leonard Schoeman
South Africa Co-Country Director
Lindah Mbidzo
Zimbabwe Country Director
Carlos Chima
Zimbabwe Marketing Director
See www.realtyafrica.com/about/local-teams for more info
Associates & Service Providers
We have been accepted as a member of the Botswana Innovation Hub Our Bankers in Botswana were we keep our investment accounts Our lawyer and trust officer in South Africa who has won several awards on best equity law firm and is currently nominated for best equity and debt fund law firm Our service provider in the due diligence process Our law firm in Botswana with many years of financial structuring expertise
Contact Us
+27 110838454 +27 825728305 Patrick.chella@realtyafrica.com Leonard.Schoeman@realtyafrica.com https://www.realtyafrica.com
By acceptance of this Memorandum, the recipient agrees that this Memorandum and the information contained herein, and the recipient’s involvement in the process described herein will be kept confidential and not disclosed to third parties unless agreed in writing by the ’Company’ hereafter known as Realty Africa BV. All information contained in the Memorandum is Confidential Information. Use of Confidential Information is strictly limited to the preliminary consideration of an investment in the business described in this Memorandum. No portion of this Memorandum may be reproduced, duplicated, or revealed in any manner without prior written consent of Realty Africa BV. Without limiting the generality of the foregoing, the recipient also agrees that photocopying or other duplication of the Memorandum and the data provided without prior written consent of Realty Africa BV is strictly prohibited. Realty Africa BV reserves the right to negotiate with one or more prospective Investors at any time and to enter into a definitive agreement for an investment in the Business or any other transaction related to Realty Africa BV without prior notice to the recipient or other prospective purchasers. Also, Realty Africa BV reserves the right to terminate, at any time, further participation in the investigation, proposal, and negotiation process by any party and to modify any procedures without giving advance notice or providing any reason therefore. None of Realty Africa BV, or its shareholders, or any of their respective officers, directors, employees, affiliates, agents, or representatives, makes any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal liability is assumed or is to be implied against any of the aforementioned with respect thereto. No information contained in this Memorandum or any other written or oral communication transmitted or made available to a recipient of this Memorandum is, or shall be relied upon, as a promise or representation, whether as to the past or future, and no liability will attach except as may be provided in a definitive agreement when, as, and if it is executed and subject to such limitations as may be provided in such agreement. In addition, any projections and estimates or other forward-looking statements contained in the Memorandum involve numerous and significant subjective assumptions and are subject to risks, contingencies, and uncertainties (many, if not most of which, are outside the control of the Realty Africa BV and its affiliates) which could and likely will cause actual results to differ materially. Such assumptions, and risks, contingencies, and uncertainties relate to, among other matters, general business, economic, and market conditions (including with respect to commodity pricing), as well as national and international political, military, and social conditions