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

Providing Access to Finance for SME’s 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  www.tuhf.co.za

TUHF – Leaders in Inner City Property Finance Specia Sp 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 on Inne nner City: Multi-sector Economies • Existing Infrastructure & Services • www.tuhf.co.za

TUHF – Leaders in Inner City Property Finance One s ne stop op finan nance s e shop f hop for or: 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 o 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

TUHF – Products Mor ortgag age Fi e Financ nance 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  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 o pe r ty units www.tuhf.co.za

TUHF – Products Int ntuthuko E o 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 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 Int ntuthuko E o Equi quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF Char arac acter eristics of of an an Intuthoko Entrepr epren eneur eur: 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 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 o 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 www.tuhf.co.za

TUHF – Statistics Int ntuthuko E o Equi quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF Units tha t inc lude I ntuthuko E q uity Since nce 2006 2006: 700 48 Buildings 600 • 500 39 Clients • 400 300 635 Units • 200 R8 827 174 100 • 2006 2007 2008 2009 2010 2011 2012 2013 2014 Changing the c o mple xio n o f o wne r ship www.tuhf.co.za

TUHF – Products Int ntuthuko E o Equi quity Fund ( Fund (IEF) i in n par partne nership w p with G h GPF 60 50 L oans 40 Buildings 30 Clie nts 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 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? Be ne fits Re sponsibilitie s I de a l fo r first time pro pe rty inve sto rs Ma na g ing T e na nt Pa yme nts • • I nc re a se d c a sh flo w Ma na g ing Va c a nc ie s • • T a x de duc tio ns Pro a c tive ly limiting lia b ility fo r injurie s • • L e ve ra g e o ne b uilding a s se c urity to a nd da ma g e s o f te na nts a nd the ir • b uy the ne xt b uilding pro pe rtie s Appre c ia ting I nve stme nt Ong o ing pre ve nta tive ma inte na nc e • • Pride o f o wne rship Une xpe c te d Ma inte na nc e E xpe nse s • • Ha nds o n a ppro a c h! • www.tuhf.co.za

TUHF – Products and Services We s e speak peak your our l languag anguage T UHF Pr oduc ts T UHF Se r vic e s 15 Ye a r L o a n T e rms T ra ining a nd me nto ring • • F e we r c o nditio ns E xpe rtise in a nic he ma rke t • • Gra c e pe rio ds o r pa yme nt ho lida ys E xte nsive ma rke t kno wle dg e • • during c o nstruc tio n a nd re nt up We ll ne two rke d a nd c o nne c te d sta ff • T a ilo r-ma de fina nc e so lutio ns with We ta ke o n e vic tio n risk • • q uic k de c isio n ma king Go o d turna ro und time s • No le a se re q uire me nts Ha nd-ho lding fo r e me rg ing • • Quic k & e ffic ie nt dra w do wn pro c e ss e ntre pre ne urs a nd ro o kie s • Pa yme nts in a dva nc e fo r c o nstruc tio n Stre e t L e ve l Appro a c ha b ility • • pro je c ts c o nside re d L o w c usto me r ra tio n pe r po rtfo lio • Sing le fa c ility inc luding purc ha se a nd ma na g e r / lo a n o ffic e r • c o nstruc tio n www.tuhf.co.za

Thank you 086 86 00 000 TUHF 0 TUHF (884 843) www. www.tuhf.co.za za TUHF G Group o up of Compani anies es TUHF UHF @TUHFpt pty