Specialist Inner City Financier attracts R125m Capitalisation

TUHF (Pty) Ltd, a commercial property financier specialising in affordable rental housing in South Africa’s inner cities, announces a substantial capital investment of R125 million, increasing TUHF’s Net Asset Value to the R200 million mark.

The company has attracted equity investments from large and well respected organisations namely, the National Housing Finance Corporation (NHFC); Futuregrowth Asset Management (Futuregrowth); and the Public Investment Corporation (PIC), as the result of its efforts and success in the affordable rental housing finance niche market. 

Combined with their previous equity investments in TUHF, NHFC’s current investment is a debt equity conversion of R75 million converting R40 million for 20% of B shares and R35 million for preference shares in TUHF. NHFC acknowledges this investment as a “catalyst to facilitate investment by other public & private sector investors. NHFC is proud to be involved with TUHF since inception when NHFC was one of the founding members of the institution and supported it through providing equity and debt funding.

This facilitative role has culminated in TUHF’s ability to now raise capital from large investment institutions such as PIC and Futuregrowth inter-alia. We are also satisfied with the TUHF Business model in contributing to the creation of historically disadvantaged entrepreneurs in the inner city Affordable rental market and the critical role they play in fostering the much needed inner city regeneration. We will continue to play an active role in TUHF to ensure that its delivery model is replicated in other parts of the country,” says Chairman of TUHF, Samson Moraba.

Futuregrowth, a long standing debt investor, has become a shareholder in TUHF along with PIC. Together, they have made an equity investment of R50 million for a 25% share in TUHF. 

Investments such as these strengthen TUHF in the inner city commercial property finance.

With R1.4 Billion already invested in the inner city, combined with these equity investments, TUHF is well positioned to leverage substantial debt facilities to finance their targeted growth. 

Major equity investments have made it possible for TUHF to effortlessly finance in red lined areas that are in the inner cities and to restore them to the 24/7 places they should be. These investments are not only about the financial returns but empowering new businesses to enter into the property market to create change in the areas and communities where TUHF finances. As winners of the 2011, Southern Africa Trust awards for Investing in the future and drivers of change “We are a committed and invested stakeholder in the inner city, and we have put our money, and that of our investors, where our mouth is” says CEO of TUHF, Paul Jackson.