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Shelter Afrique approves USD24 million housing loan to Lagos-based real estate firm, Landmark Africa
Shelter Afrique approves USD24 million housing loan to Lagos-based real estate firm, Landmark Africa
– The facility will partly finance the construction of mixed-used housing project, Landmark Waterview Apartments and refinance its existing debt
Nairobi: November 1, 2022: Pan-African housing development financier Shelter Afrique has approved a USD24.03 million (₦10 billion) commercial loan to Lagos-based Tier 1 real estate and property development firm, Landmark Africa.
The 7-year line of credit with a moratorium of 36 months has been structured to partly finance the construction of mixed-use housing project, Landmark Waterview Apartments and refinance its existing debt.
“We are excited to record this significant milestone as the first project we are partnering with Landmark Africa. This is truly a high-point for Shelter Afrique and we are happy that the deal is adding to the long and successful history the Company has had with Nigeria,” Shelter Afrique Ag. Managing Director Kingsley Muwowo said.
“We remain committed to financing real estate projects that promote innovation and affordability, and we look forward to a long-term relationship with Landmark Africa,” he added.
Mixed-use destinations
Commenting on the deal, Landmark Africa Chief Executive Officer, Mr. Paul Onwuanibe said, “the Landmark Africa vision is to create one stop destinations which embody the business, leisure and lifestyle philosophy.”
“Such innovative undertakings in the real estate sector require a formidable financial partnership and we are pleased to have found such a partner in Shelter Afrique. We are equally pleased to receive this long-term funding, which will help accelerate the delivery of the Landmark Waterview Apartments project thus enhancing the residential play within our mixed-use ecosystem while having a multiplier effect on the existing business, leisure and lifestyle service offerings. It will also help align our capital structure to our long-term strategic goals” Mr. Onwuanibe added.
Key market
Nigeria remains one of the key markets for Shelter Afrique. In addition to the Landmark Africa deal, the Company has so far extended lines of credit to another Lagos-based real estate firm Mixta Africa (USD19.5 million) and Wema Bank (USD10 million), this year alone.
Shelter Afrique Eyes Sovereign Lending Products
Shelter Afrique Eyes Sovereign Lending Products
- The Company has already conducted an in-house capacity building in partnership with the African Development Bank ahead of launch.
Nairobi: October 24, 2022 – Shelter Afrique is developing a Sovereign Lending product to supplement its traditional products that attend to both the demand and supply sides of the housing value chain, the pan-African housing development financier has disclosed.
Speaking in Nairobi, Shelter Afrique Ag. Managing Director Kingsley Muwowo said Africa’s GDP contraction resulting from COVID-19 pandemic was an alarming sign of slump in the inclusive housing goals in many countries and thus the need by the Company to respond to the risk of a possible governments’ disengagement, while revitalizing its financial agility.
“The COVID pandemic has brought in an era of economic distress throughout Africa with an average of -3.6 per cent recession in 2020, the first recession in SSA in 25 years. In response, Shelter Afrique recently reviewed its corporate strategic plan with the aim of aligning itself to its members’ priorities and position the company for better performance and enhanced development impact. One of the result of this strategy review is the decision to develop a Sovereign Lending product to serve our member states,” Mr. Muwowo said.
Currently, the Company offers various products and related services including project finance, institutional lending, equity investments & joint ventures, trade finance, and social housing, to support the delivery of affordable housing and commercial real estate.
Capacity building
Mr. Muwowo was speaking at a three-day in-house capacity building on sovereign lending organized by the Company and facilitated by the African Development Bank through its training arm, the African Development Institute.
Through training, Shelter Afrique aims to expand its capacities for funds absorption from the anticipated new business development, carry out product design and development, as well as support the organization’s various departments to ensure the product is developed and executed effectively.
“Internally, these activities will be executed through experts in various departments in liaison with the African Development Institute to ensure the product is well in line with the market needs of our member States,” Mr. Muwowo said.
African Development Institute Divisional Manager, Mr. Chidozie Emenuga said the partnership with Shelter Afrique was part of the Africa Development Bank Group commitment to step up its efforts to help overcome the capacity constraint in Africa.
“Capacity development is key to realizing major development goal including the SDGs- which encompasses housing for all, the Addis Ababa Accord on Accelerating Development Financing, the African Union’s Agenda 2063, and national development goals of African countries,” Mr. Emenuga said.
Shelter Afrique Eyes Sovereign Lending Products
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Private Sector Project Finance
1) Who and what are we?
Shelter Afrique is a Pan-African housing finance institution, headquartered in Nairobi, Kenya, owned by 44 African member governments (Class A shareholders)
The African Development Bank, Africa-Reinsurance and Fonds de solidarité Africain.(Class B shareholders)
2) Is Shelter Afrique an NGO?
No, we are a profit-making finance company, wholly owned by our shareholders.
3) Does Shelter Afrique have branch offices in member countries?
To date, we have a central office in Nairobi, Kenya, and two regional offices in Abuja Nigeria, and Abidjan, Ivory Coast.
4) Is Shelter Afrique a construction company?
No, we are a development finance institution, dedicated to mobilize and provide financing and advisory solutions for housing and related infrastructure. We do not build houses or engage directly in real estate construction.
5) Can I get a mortgage from Shelter Afrique?
No, Shelter Afrique is not a retail bank and therefore does not lend directly to individuals, but rather to financial institutions/intermediaries that will then on-lend to individuals and/or developers.
6) Who can apply for Shelter Afrique financing?
The following categories are eligible for Shelter Afrique funding:
– Private corporate entities duly registered in their respective jurisdiction Financial Institutions
– National Housing Authorities or relevant government agencies
– Organized Co-operative Societies
7) Are there criteria my project must meet to be eligible for financing?
Yes, to be eligible for Shelter Afrique funding your project must include the following:
– Be technically sound
– Have good prospects of being profitable
– Benefit the local housing/real estate sector
– Be environmentally and socially sound, satisfying Shelter Afrique’s environmental and social standards as well as those of the host country
8) Is my country eligible to receive Shelter Afrique financing?
To receive Shelter Afrique funding, ideally your project must benefit a member state. However, we do also consider projects in non-member states on a case-by-case basis.
9) What types of financing does Shelter Afrique provide?
Shelter Afrique provides clients with loans, loan participations under syndication schemes, equity and trade finance. We can offer financing in various currencies, including Kenya Shillings, CFA Francs, Rand, US Dollars and Euro.
10) How much will Shelter Afrique lend?
– Shelter Afrique will finance:Up to 60% of a project construction cost;
– Up to 50% of its equity, to any financial institution;
– With an exposure to any borrower not exceeding 15% of its own shareholders’ funds
– Investments typically ranging from USD2 million to USD10 million.
11) What interest rate does Shelter Afrique charge?
We offer competitive lending rates on a fixed or floating basis. Our applicable interest rates will typically vary according to our cost of funds per currency and the risk profile of the transaction and the borrower.
12) What is Shelter-Afrique’s financing tenure?
As a general guide, the following lending tenures are available:
– Short term loans (1-2 years)
– Medium term loans (2-5 years)
– Long term facilities (5-10 years)
– Special loans (10 – 12 years)
– Long term and special facilities are only available to sound financial and housing finance institutions or seasoned real estate companies that have an established and consistent profitability track record of no less than three years.
13) Is there a grace period?
Yes, we can offer a grace period of up to three years for project preparation and implementation depending on the nature and merits of the project. Interest on disbursed funds is however payable during the grace period.
14) How do I apply for funding?
If you’d like to apply for funding from Shelter Afrique, please sendyour application and supporting documents to:
Director of Business Development & Operations Shelter Afrique Centre,
Longonot Road, Upper Hill,
P.O. Box 41479 (00100),
Nairobi (KENYA)
E-mail: info@shelterafrique.org
Frequently Asked Questions
ISO 9001: 2015: Quality Policy Statement
Shelter Afrique (“The Company’’) is a Pan-African company established out of a partnership between 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Corporation. The Company has been established to support and increase the supply of affordable housing in Africa, by fostering viable strategic partnerships and offering a range of financial and technical products and related services. With its headquarters in
Nairobi, Kenya, the company has two regional representative offices in Abidjan (Cote D’Ivoire) and Abuja (Nigeria).
The Company is committed to implementation of quality management standards as advanced by ISO 9001:2015. We have designed our products and services with the quality metrics in mind, which will ensure that we meet and exceed our customer expectations. We intend to continually achieve this objective by implementing, maintaining and continually
enhancing our corporate governance practices, risk management processes, operational systems and technologies, and product development processes.
Our quality management practices extend to employee empowerment, training and awareness of our institutional mandate, strategic objectives, business goals and stakeholder expectations. At the heart of our organizational quality management system is our core values of Accountability, Customer Centricity, Teamwork, Integrity and Innovation espoused by the acronym -ACTIIn. All our staff and partners are required and expected to inculcate these values in all our operations, stakeholder engagements and provision of products and services to our customers.
As a transformed institution, we are committed to sustained maintenance of our quality management system as per the requirements of ISO 9001: 2015 standard. Our leadership team will continually review the quality management system for relevance and adequacy and address any areas of improvements expected to guarantee our customers, clients and all key stakeholders’ quality and experiential service delivery.
Signed
ANDREW CHIMPHONDAH
MANAGING DIRECTOR
Date: 27th SEPTEMBER 2019