Providing Access to Finance for SMEs Central role of the small and - - PowerPoint PPT Presentation

TUHF - Trust for Urban Housing Finance

GPF – Property Entrepreneur Seminar 17 Sept’14 Paul Jackson, TUHF CEO

www.tuhf.co.za

• Central role of the small and medium enterprise
• By supporting them we address many social challenges by eradicating poverty

through business and profit

• We provide financial inclusion for ordinary South Africans – recognizing their

education in life and the inner city

• Provide financial inclusion to businesses that drive employment creation

Providing Access to Finance for SME’s

www.tuhf.co.za

Sp Specia ialis lists in in:

• Independent Commercial Property Finance
• Affordable rental housing in inner cities facing urban decline
• Landlords engaged in profitable rental housing businesses from small 2 flat

(starter clients) to large 2800 flats properties

• Loan book of R2 billion

Foc Focus us on

• n Inne

nner City:

• Multi-sector Economies
• Existing Infrastructure & Services

TUHF – Leaders in Inner City Property Finance

www.tuhf.co.za

TUHF – Leaders in Inner City Property Finance

One s ne stop

• p finan

nance s e shop f hop for

• r:
• Mortgage Finance – up to R30m per deal Family Housing and Student Acc.
• Bridging Finance
• Construction Finance
• Equity Partnership – in partnership with

Gauteng Partnership Fund (GPF)

Office ces i s in:

• Gauteng
• Eastern and Western Cape
• KwaZulu Natal

T UHF was awar de d the Afr ic an Banke r Awar d fo r Mo r tgage Bank o f the Ye ar 2013/ 14

www.tuhf.co.za

What makes TUHF different?

• Longer Loan Terms
• Easier loan conditions
• People from various backgrounds
• A single term facility
• Look at the person not the deal exclusively
• We are not a micro lender nor a

home loan financing company

• Induction Training
• Mentorship Program

We spe ak yo ur language and e ngage at yo ur le ve l and thr

• ugh o ur

c o nne c te d ne two r k we ke e p yo u we ll info r me d

www.tuhf.co.za

• Single term loan over 15 years
• Purchase only or Purchase plus

refurbishment to existing buildings

• Residential Refurbishment only
• Conversions & New Build
• Construction (6 – 18 Months)
• Less strenuous conditions

TUHF – Products

In just o ve r de c ade o f o pe r atio n, T UHF has financ e d o ve r 20 000 inne r c ity r e side ntial pr

• pe r

ty units

Mor

• rtgag

age Fi e Financ nance

www.tuhf.co.za

Int ntuthuko E

• Equi

quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF

• Supports previously disadvantaged South Africans in selected lower

income occupations and groups to enter the residential property market

TUHF – Products

• Acts as a partner, by contributing

to the deposit or equity necessary for loan approval

• The prospective business should

earn enough money to repay the loan and make a profit for the entrepreneur

www.tuhf.co.za

TUHF – Products

Char arac acter eristics of

• f an

an Intuthoko Entrepr epren eneur eur:

IE F aims to he lp ne w inve sto r s e nte r the inne r c ity r e side ntial pr

• pe r

ty mar ke t, bo o sting ne w busine ss & suppo r ting e me r ging e ntr e pr e ne ur s

• Be mature with a flair for business
• Prepared to contribute own money
• Hard working & solutions oriented
• Familiar with inner city
• Determined to make a better life
• Proud to own a clean & well-run

building

Int ntuthuko E

• Equi

quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF

Int ntuthuko E

• Equi

quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF

TUHF – Statistics

Since nce 2006 2006:

• 48 Buildings
• 39 Clients
• 635 Units
• R8 827 174

www.tuhf.co.za

Changing the c o mple xio n o f o wne r ship

100 200 300 400 500 600 700 2006 2007 2008 2009 2010 2011 2012 2013 2014

Units tha t inc lude I ntuthuko E q uity

Int ntuthuko E

• Equi

quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF

TUHF – Products

www.tuhf.co.za

10 20 30 40 50 60 2006 2007 2008 2009 2010 2011 2012 2013 2014

L

• ans

Buildings Clie nts

www.tuhf.co.za

TUHF – Partnerships

• We have very important relationships.
• NHFC is one of our partners and we cooperate with them at a range of levels
• Equally important is the GPF for the Intuthuko Equity Fund

www.tuhf.co.za

What does Inner City Residential Property Ownership mean?

• Urban Densification
• Right side of urban regeneration
• Right side of energy and transport efficiencies
• Right side of technology
• High demand
• Secure lending
• Good service / firm credit control

www.tuhf.co.za

What does Residential Property Ownership mean?

Re sponsibilitie s

• Ma na g ing T

e na nt Pa yme nts

• Ma na g ing Va c a nc ie s
• Pro a c tive ly limiting lia b ility fo r injurie s

a nd da ma g e s o f te na nts a nd the ir pro pe rtie s

• Ong o ing pre ve nta tive ma inte na nc e
• Une xpe c te d Ma inte na nc e E

xpe nse s

• Ha nds o n a ppro a c h!

Be ne fits

• I

de a l fo r first time pro pe rty inve sto rs

• I

nc re a se d c a sh flo w

• T

a x de duc tio ns

• L

e ve ra g e o ne b uilding a s se c urity to b uy the ne xt b uilding

• Appre c ia ting I

nve stme nt

• Pride o f o wne rship

www.tuhf.co.za

We s e speak peak your

• ur l

languag anguage

TUHF – Products and Services

T UHF Se r vic e s

• T

ra ining a nd me nto ring

• E

xpe rtise in a nic he ma rke t

• E

xte nsive ma rke t kno wle dg e

• We ll ne two rke d a nd c o nne c te d sta ff
• We ta ke o n e vic tio n risk
• Go o d turna ro und time s
• Ha nd-ho lding fo r e me rg ing

e ntre pre ne urs a nd ro o kie s

• Stre e t L

e ve l Appro a c ha b ility

• L
• w c usto me r ra tio n pe r po rtfo lio

ma na g e r / lo a n o ffic e r

T UHF Pr

• duc ts
• 15 Ye a r L
• a n T

e rms

• F

e we r c o nditio ns

• Gra c e pe rio ds o r pa yme nt ho lida ys

during c o nstruc tio n a nd re nt up

• T

a ilo r-ma de fina nc e so lutio ns with q uic k de c isio n ma king

• No le a se re q uire me nts
• Quic k & e ffic ie nt dra w do wn pro c e ss
• Pa yme nts in a dva nc e fo r c o nstruc tio n

pro je c ts c o nside re d

• Sing le fa c ility inc luding purc ha se a nd

c o nstruc tio n

086 86 00 000 TUHF 0 TUHF (884 843) www. www.tuhf.co.za za

TUHF G Group o up of Compani anies es @TUHFpt pty TUHF UHF

Thank you