NURCHA

AGENDA

Introduction and welcome

Who is NURCHA

Access to Finance: Affordable Housing

Typical Social Housing Funding Structure

Who is NURCHA

NURCHA is an innovative development finance company providing

bridging and development finance to Contractors and Developers

involved in the development of Subsidy and Affordable Housing. In

order to address challenges within the human settlements sector,

NURCHA also provides Programme Management and Project

Implementation services to Human Settlements sector across all

spheres of government.

Our Mandate & Vision

NURCHA ensures the availability of bridging finance to small, medium

and established contractors, building low and moderate income

housing and related community facilities and infrastructure.

To be regarded as a partner of choice for those seeking innovative

bridging finance solutions.

Loans since inception

Subsidy Housing Affordable

Housing

Infrastructure and Community

Facilities Total

Number of loans 944 175 281 1,400

Houses in loans signed 344,146 35,973 n/a 380,119

Houses/projects completed 246,028 29,794 184 276,006

Value of loans R1.336 billion R1.497 billion R632.3 million R3.465 billion

Value of projects R8.912 billion R5.811 billion R3.848 billion R 18.571 billion

AFFORDABLE HOUSING

Understanding Affordable Housing in SA

Bonded houses that sells in the market below R550,000

Serves the salary band between R3,500 to R15,000 per month

Market accounts for 32% of the home loan book amongst the Banks

20,000 units are delivered to the market annually

NURCHA’s contribution is approximately 2,000 units per annum

Demand of one million new homes

Sectors within the Affordable Housing Market

NURCHA’s Success in the Industry

• Programme commenced in 2002.

• It is a key component of NURCHA’s business

acts as a catalyst to stimulate housing delivery

in SA

• Focused to advance the “Outcome 8” targets

set by National Dept. of Human Settlements

• Detailed below is our achievements to date.

Geographic Spread of Projects

Limpopo, 7.14%

Eastern Cape, 0.00%

Northern Cape, 0.00%

Gauteng, 57.14%

Mpumalanga, 14.28%

Kwa-Zulu Natal, 7.14%

Free State, 0.00%

Northwest Province, 0.00%

Western Cape, 14.30%

Limpopo Eastern CapeNorthern Cape GautengMpumalanga Kwa-Zulu NatalFree State Northwest Province

12 years of successful housing

Access to finance: Affordable Housing

• Major focus on GAP market, high density and sectional title

developments.

• Ideally looking for developers or contractors who have proven track

record and ability to deliver.

• Gearing and level of equity investment will be dependent on the

profile of the client.

• Loans not exceeding 24 months.

• 95% of the portfolio must be below R600k.

• From inception to date have signed contracts for

35 000 housing units, R1 billion in loan value and R5 billion in project

value.

Affordable Housing Products

• Township Development: Affordable

• Township Development: GAP Housing

• High Density Sectional Title

• Rental Accommodation/Social Housing

• Student Accommodation

• Emerging Developer Programme

• Nurcha will carry the development risk for the rental

and student accommodation provided guaranteed

take out finance exits for the long term

Affordable Housing: Sectional Title

Affordable Housing: The GAP market (continued)

Affordable Housing: Site and Services (continued)

The Application Process

The client forwards a project application to NURCHA

The application is assessed by the Project Manager

Should the project be viable a recommendation is made to

NURCHA’s credit committee.

Once the application is approved a loan agreement is

prepared and the agreement is signed.

Drawdown's may take place once the loan conditions have

been complied with.

NURCHA monitors the progress

Security Requested

• 1st CCMB over the Property to be developed

• Should this not be available, equilivant alternate

collateral

• Suretyships from holding company and individuals

• Cession of book debts

• Step-in rights

• Cession and pledge of shares

Pricing and Fees

– Interest rates vary from Prime + 1% to Prime + 5%

– Initiation fee from 1 -3%% of Loan Value.

– Drawdown Fee” is R250 per drawdown

– Guarantee Fee: 2.5% per annum

– Release of Consents: R50 per consent < 300

stands & R30 > 300 stands

– Gearing is 70% off development cost

Phase 1 Phase 2 Phase 3 Phase 4

Erf 1953 Erf 5023 & 559 Arlington Race Course Others

935 1,000 2,600 4,500

1

2 2

2 3

4

4

4

Conclusion

– NURCHA have the required competency in both the lending

and programme management portfolio.

– We posses the ability to implement change management and

drive the efficient and cost effective utilisation of resources.

– NURCHA has received a clean audit every year since

inception – testimony to its systems, capabilities and

governance structures.

– NURCHA are able to provide sound technical, management

and financial advice to clients.

– Our deliverables are aligned to the DHS Outcome 8 targets.

Contact us

We would welcome an opportunity to discuss your specific requirements.

Please contact us via any of the following channels:

NURCHA HEAD OFFICE

Physical address: 3rd Floor, 54 on Bath

Cnr Bath and Tyrwhitt Avenues

Rosebank, 2194

Contact number: 011 214 8700

or 0861 NURCHA (687 242)

Fax: 011 880 9139

NURCHA PORT ELIZABETH

Physical address: 3rd Floor, Regus House Office Number 316 and 317 Fairview Office Park Ring

Road, Greenacres Port Elizabeth, 6057

Contact number: 041 399 9460 or 0861 NURCHA (687 242)

Email: info@nurcha.co.za

Web: www.nurcha.co.za

THANK YOU