Investment Proposal Affordable Housing Botswana
Specialised in African Investments Realty Africa BETONIQ Realty Africa Innovative Investment Inspiring Africa The Masters of Affordable Building Innovative Investment Inspiring 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
Philosophy Investing Creation of Partnerships Affordable Housing
Brand values Creativity Community Financial Gain
The first crowdfunding Offering in Botswana “Rerotlhe Haven” Good Quality Affordable Housing
Offering Summary High demand sector ü All House are already sold off-plan ü Situated on the edge of the some of the busiest areas in Gaborone and close to public transport ü Owner and developer: Moalusi family & Vantage Properties ü Open to all investors worldwide: https://invest.realtyafrica.com ü Country: Botswana ü Return: 12 % per annum ü City: Mogoditshane close to Gaborone ü Term: 1 years ü Investment Currency: BWP (Pula) ü Payment: I year on exit ü Amount: P 5.4 Million ( ± 527.000 USD) ü Collateral: Property is collateral ü Type: Loan ü Hedging: Currency is not hedged
Win Win Opportunity 12 % Annual Return 1 Affordable Housing 17 Year BWP 5.4M Units ( ± 527.000 USD) Open to all investors Worldwide
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 )
Rerotlhe Haven Project Overview
Overview The plan contains 17 units of Affordable Housing 13 for sale and 4 for rent AFFORDABLE HOUSING IMPROVES: ü Transition from "market" to "production" cities ü People can be closer to their employment ü Economic development & political stability ü Demand for Affordable Housing is Huge ü Housing backlog in Botswana alone is 25% of population. https://goo.gl/hyG0g2
Location Ø Location is on Plot 11876 Mogoditshane on the edge of Gaborone in Botswana Ø Molepolole road is one of the busiest roads in Gaborone and this road passes through Mogoditshane Ø This location has a huge need for Affordable Housing and it is very easy to get good tenants or sell the units. Ø Google Maps: https://goo.gl/Uh5ohs
House Construction There are many ways to construct affordable housing projects. Rerotlhe Haven’s are: ü Build in a traditional way ü 2 bedrooms bungalow apartments ü Bathroom with full facilities ü Open plan kitchen and lounge ü Construction period estimated between 6 and 12 months ü Central easily accessible parking area ü Central Laundry and Guard facilities
Developer Ø The developer Enoch Moalusi of Alpha Plus Prop Ltd in Gaborone Ø The developer Vantage Properties have vast experience in developing and managing residential, student and commercial developments 17 More information about the developer on https://goo.gl/xjNuhR
Impressions See movie on https://goo.gl/cP71r2
The Investment Structure
Investment Conditions Realty Africa offers an opportunity to invest in a one year loan to finance an complex of 17 Affordable Houses in Mogoditshane Botswana. After one year the loan will be exited based on sale of the houses. Currently 9 houses have been pre-sold. The loan is for a total of 5.4 million BWP (Botswana Pula which is ( ± 527.000 USD) with a yearly return of 12 % paid on Exit instances and the land as collateral. Land with buildings has sufficient value. Hedging currency risk is an individual choice of the investor. The project has undergone a strict due diligence process and a review of the demand in the area has been checked. The loan will break even at only 13 houses sold and 9 houses have been taken up at this moment before building commences. 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 overseen by an independent Trust officer 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 Botswana 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 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
Team Erik van Eeten Patrick Chella Emil Bengtsson CEO Realty Africa CTO Realty Africa CFO Realty Africa MBA with many years of experience in Engineer, MBA and Chartered Controller with Hard Core system developer with many years Banking, Investment management and Africa many years of experience in Banking, of development experience Expert Investment management and Real Estate
Country Directors Carlos Chima Lindah Mbidzo HRH Lomcebo Mahlangu Zimbabwe Marketing Director Zimbabwe Country Director Co-Tribal & Rural Land Development Director SA Dunstan Masondo Sethebe Manake Leonard Schoeman Co-Tribal & Rural Land Botswana Country Director South Africa Co-Country Director Development Director SA See www.realtyafrica.com/about/local-teams for more info
Associates & Service Providers We have been accepted as a member of the Our law firm in Botswana with many years of Our Bankers in Botswana were we keep our Botswana Innovation Hub financial structuring expertise investment accounts Our service provider in the due diligence process
Contact Us Patrick.chella@realtyafrica.com +27 110838454 Sethebe.manake@realtyafrica.com +267 72111247 https://www.realtyafrica.com
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