Category: news-room-2018

• The 248-unit development comprise of two and three bedrooms apartments selling at KSh. 8.5m and KSh 9.5m respectively.

Pan-African housing development financier, Shelter Afrique and the Investment and Development subsidiary of HF Group, HF Development & Investment Limited (HFDI), have completed the development of the multi-million-shilling property development, Richland Pointe which targets the growing middle-income population.

The modern apartments located along Kamiti Road in Kiambu County, are developed under a joint venture vehicle, Richland Development Limited, between HFDI and Richland Dam Estate Limited.

Under the arrangement, Richland Dam Estate Limited provided land where the project sits on whilst HFDI provided equity equivalent to the land and Shelter Afrique provided debt to the tune of KSh700 million.

The property comes with lifts, backup generators, secure boundary walls and is well oriented on sloped terrain to give a pleasing view of the spacious affordable apartments.

“The completion of Richland Pointe reinforces Shelter Afrique’s strong partnership with HF Group and our joint commitment to the development of affordable housing in Kenya. The Richland Pointe project is a continuation of our relationship with HF Group,” said Shelter Afrique Chairman Daniel Nghidinua. “In 2012 Shelter Afrique approved KSh 647 million to HF Group for the development of 165 units in Komarock Phase 5A. A further KSh 930M was advanced to HF Group for the development of Komarock Phase 5B and K-Mall.”

Mr. Nghidinua was speaking at an event to officially launch the project with HFDI following its completion.

Speaking at the same event HF Group Managing Director Robert Kibaara said that HF is committed to making affordable home ownership possible for Kenyans, adding that the Group is currently running a property sales promotion dubbed Shika Nyumba na HF, which seeks to make existing properties even more affordable to potential buyers locally and in the diaspora.

“We have reduced prices up to 30% on some of our properties in various prime locations in Nairobi and its environs. These include properties owned by HF and those belonging to developers whom we have financed. Our ambition is to make home ownership a reality for the middle-income market segment,” Said Mr. Kibaara.
In addition to the discount offer, HFC, HF Group’s banking arm will extend financing options to prospective buyers.

The property comes with lifts, backup generators, secure boundary walls and is well oriented on sloped terrain to give a pleasing view of the spacious affordable apartments.

Shelter Afrique, the Pan-African Finance Institution responsible for affordable housing has announced its Stable Outlook Rating by Bloomfield Investment Rating Agency. Following re-evaluation of the Shelter Afrique, the Bloomfield Investment Corporation Rating Committee decided to maintain in the long term, the BBB + rating (investment grade), with a stable outlook
Bloomfield also elected to continue in the short term, the rating of A3 (investment grade), and to reduce the outlook from negative to stable.

The Rating Agency observed, following various operational and management transitions, Shelter Afrique suspended its activities since 2017.

This suspension allowed the development of a new strategy and internal reorganisation and staffing to meet the needs of the new strategy and the resumption of business activities.

The Rating Agency also noted that, during this period, the management team and the board focused on:
– The consolidation of the portfolio, due in part to the capacity building of the Recovery Department, which has improved the quality of the portfolio;
– The recapitalisation of the institution by collecting contributions from member countries;
– The development of new risk management procedures and reflections on the new strategy to be put in place.

Indeed, in 2017, Shelter-Afrique prioritised the implementation of its new strategy and demonstrated a willingness to recreate favourable conditions for the development of its primary activity, in an environment where the need for housing remains strong.
Bloomfield notes however that, despite an improvement in operating income resulting from a lower level of provisions, caution should be taken to manage the deficit in profitability, in particular, because of the exchange losses on the Kenyan Shilling.

However, Shelter Afrique commenting on the development sounded an upbeat and optimistic note, speaking on the Stable Outlook, the organisation is committed to continuing to bring value to its shareholders and deepen existing relationship, and it begins to build new ones. Shelter Afrique noted that the commitment of shareholders to called capital was still vital to maintaining the stable outlook.

Bloomfield also took note of the recent signature of the Standstill agreement by the shareholders.
Shelter Afrique recently announced the appointment of Andrew Chimphondah as its Managing Director and is expected to resume business activities.

We wish to respond to the said article and to the particular counter and clear the misrepresentation of facts that appeared or has been created therein. We reject the article as incorrect and blatant and malicious misrepresentation of the state of affairs of the company.
The accurate position is as follows:
1. Under the guidance of its Board and the support of its shareholders and lenders, the Company, as a business and like many other businesses that operate in similar complex and competitive environments, has embarked upon and is midway through a business turnaround which will see it enhancing its operational efficiency and return to profitability amidst challenging macroeconomic conditions that are largely external and beyond its control.

2. As part of the turnaround process and forward-looking strategy that seeks to support the development of up 100,000 affordable homes and creating over 30,000 jobs across the African continent by 2022, As you may be aware, Shelter Afrique (SHAF) is the only Pan-African finance institution that exclusively supports the development of the housing and real estate sector on the continent. The Company is a partnership of 44 African Governments, the African Development Bank (AfDB) and the Africa Re-insurance Company. In pursuit of its business and developmental mandate, SHAF builds strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate.

3. As part of its turnaround strategy, Shelter Afrique has been working closely with its shareholders as well as key partners and stakeholders such as lenders. Among the instruments that are being pursued and employed to bring about the desired operational efficiency and effectiveness is the restructuring existing facilities. This is a normal and not unusual business turnaround activity. It is a very positive step, and is not a woe!

4. Contrary to the impression that the cynical article seeks to portray, the company including its Board, shareholders and partners are supportive of the ongoing turn-around process and the long-term future of this vital pan African institution – the only one of its kind on the continent focused exclusively to supporting the development of affordable housing.

5. Drawing on its over 35 years of experience including lessons from the recent past, Shelter Afrique is emerging stronger and better capitalised to help its shareholding African Governments in providing the much-needed affordable homes and jobs.
The Company re-affirms its commitment towards the good governance principles of accountability, transparency and access to information about its operations.

Femi Adewole MBA MRICS
Managing Director
Shelter Afrique

Shelter Afrique the Pan-African Housing Financier dealing exclusively with the promotion of affordable housing has appointed a new Board Chairman. Mr Daniel Nghidinua of Namibia replaces Mr Jean Paul Missi of Cameroon, who remains a member of the board.
Mr Nghidinua is a seasoned technocrat, who serves as Permanent Secretary in the Ministry of Urban and Rural Development. He has also served in numerous government positions, some of which include as Deputy Permanent Secretary, Ministry of Trade and Industry; Acting Managing Director, Namibia Wildlife Resorts and Chief Executive Officer: Offshore Development Company.
Mr Nghidinua holds a Masters of Science degree in Public Policy & Management from the School of Oriental & African Studies (SOAS), United Kingdom and a Bachelor of Administration (Economics & Development Administration), University of South Africa (UNISA), Pretoria, South Africa.

Mr Nghidinua takes over the Chairmanship of the 11th Shelter Afrique Board at a time when the company is undertaking a major overhaul of its business and its structure. He will be overseeing the positioning of the company as an investment-grade organisation and a capital drive which will include opening membership to new Class C shareholders.

Mr Nghidinua also sits as a Member of the Board of Directors of the Offshore Development Company, Namibia and was the Chairman of the of the Board of Directors of the Namibia Tourism Board.

Shelter Afrique the Pan-African Housing Financier dealing exclusively with the promotion of affordable housing has officially announced the winners of its 5000 for 5000 Housing Competition. The competition was launched at the 2016 Annual General Meeting in Abuja, Nigeria. The competition sought to stimulate and reward innovative thinking about how a liveable and sustainable home can be designed and produced at a capital cost of no more than US$5000 equivalent to the end user.

Shelter Afrique would then commit to developing 5000 of these units across the continents over a period, hence the name. Over 120 submissions were made for the competition from various countries across the world.

A panel of judges comprised of housing experts in Africa was convened in May of 2017 to review the submission, led by Professor Jerry Magutu of University of Nairobi. The panel also included Dr Michael Majale a researcher based in Uganda, Mamadou Gueye the Chief Operating Officer of Housing Bank, Senegal, Steve Rukwaro, a Quantity Surveyor based in Kenya and lastly, Nina Martiz an architect based in Namibia.

The judges measured each submission against the following criteria; Sustainability, Practicability, Supply Chain Innovation and beauty and aesthetic.

At the end of the process, three winners were selected. First place was awarded to Teteh & Associates of Ghana; second place was awarded to Morphosis Limited of Kenya and third place was awarded to Sharon Davis Design of New York, United States.
Speaking on the competition, Managing Director, Femi Adewole, noted “Our new strategy emphasises innovation and large-scale development, two of the criteria for the competition, so this announcement is very timely. We were amazed at the rich well of ideas there is for affordable housing and indeed at the response to the competition. This shows that Africa is not bereft of ideas, what we need is better execution. We congratulate all the winners, but not just them, everyone who participated in this, because they have shown a passion and a commitment to affordable housing and we are always very keen to be associated with people like that.”
The judges report also singled out and commended Hydraform of South Africa, Adengo Architecture of Uganda, XTEK Systems of South Africa and Architect Collaborative of Botswana for the innovation and potential of their submissions.

Shelter Afrique intends to have the top ten submissions presented to their shareholders at the Annual General Meeting in July. Speaking on this, Femi Adewole noted “We have received a lot of interest in the solutions and submissions, some reputable universities and research institutes have made their intentions known. We are also receiving a lot of interest from our member countries; many them have initiated large-scale housing projects, we see our competition as a solution and answer to large-scale housing projects.

A cash prize of $100,000.00 is expected to be shared among the first three winners.

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Note to Editors

About Shelter Afrique
Shelter Afrique (SHAF) is the only Pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. A partnership of 44 African Governments, the A

Our attention has been drawn to the report by the Business Daily printed on the 25th January on pages 1 & 4, titled Buyers Face Loss as 240 Houses are Found Unfit. We would like to state for the record that the header for this report and the report itself are largely erroneous, we are in receipt of the National Building Inspectorate report, reference number BI/SEC/3/VOL.lll(90)

While the report does flag areas of repair, most are maintenance-related defects; there are however some structural implications on two blocks with a total of 20 units. The report concludes that further tests should be carried out on all buildings on the property but does not declare all buildings as unfit. A stakeholder forum scheduled for next week with the authorities will agree on the proposed solution. What the Business Daily report does is to pre-empt these investigations. This in our view, is not appropriate.

Shelter Afrique has a 35-year history in Kenya and in that time, has financed over 300 housing projects, we currently have over KSH8bn invested in the Kenyan housing market. Kenya remains one of our strongest shareholders and partners, and we have always endeavoured to meet and indeed set the highest standards for the construction industry.

We require all our developer partners to ensure that their preferred Advisors, Architects, Engineers, and Quantity Surveyors are professionally trained and certified, this is the standard we hold all clients to, in Kenya and beyond.

We, however, regret the inconvenience caused to the residents of Everest Park, we continue to acknowledge that housing is a deeply personal matter for most people and we do not take that for granted. In the time since we have learnt of these defects, we have held several meetings with Everest Park Management, the Residents Association and we have corresponded with the NBI. Our senior management team has also paid several visits to the site to assure residents and all involved, of our continued commitment to finding an acceptable and swift resolution.

We would like to encourage all residents of Everest Park to remain calm and be assured of our commitment to finding a quick resolution; we have called a stakeholders meeting at the NBI next week and will use the opportunity to address all concerns of stakeholders involved and propose remedial action.

Shelter Afrique remains committed to the vision of affordable and quality housing in Kenya and will never waver in the pursuit of affordable homeownership for all Africans