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 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 Africa “Langeberg Villas” Good Quality Affordable Housing
Offering Summary The offering on the Langeberg Villas includes: ü Property is 80% ready ü No development Risk ü Only 50% occupancy needed to pay loans ü Owner and developer: Selique Properties ü Open to all investors worldwide: https://invest.realtyafrica.com ü Country: South Africa ü Return: 10 % per annum ü City: Sasolburg close to Johannesburg ü Term: 3 years ü Investment Currency: ZAR (Rand) ü Payment: Semi Annually ü Amount: 3.78 Million ( ± 278.000 USD) ü Collateral: Property is collateral ü Type: Loan ü Hedging: Currency is not hedged
Win Win Opportunity 10 % Annual Return 3 Affordable Housing 28 Years ZAR 3.78 Million Units ( ± 278.000 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 )
Langeberg Villas Project Overview
Overview The plan contains 28 units of Affordable Housing 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 South Africa alone is 2.1 million https://goo.gl/FuykK0
Location Ø Location is Sasolburg in South Africa close to Johannesburg Ø This location has a huge need for Affordable Housing and it is very easy to get good tenants 28 Ø Google Maps: https://goo.gl/j4ezEb
House Construction There are many ways to construct affordable housing projects. Langeberg Villas are: ü Build in a traditional way ü One floor apartments in rows of 5 ü The whole side will be prepared and ready for living
Developer Ø The developer and owner is Selique Properties in Johannesburg Ø The developer has much experience in developing and managing residential, student and commercial developments More information on https://goo.gl/9i5meM 28
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 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 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 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 lawyer and trust officer in South Africa Our Bankers in Botswana were we keep our Botswana Innovation Hub who has won several awards on best equity investment accounts law firm and is currently nominated for best equity and debt fund law firm Our law firm in Botswana with many years of Our service provider in the due diligence financial structuring expertise process
Contact Us Patrick.chella@realtyafrica.com +27 110838454 Leonard.Schoeman@realtyafrica.com +27 825728305 https://www.realtyafrica.com
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