• The 200 units developed at a cost of KSh 720 million comprise of one, two and three bedrooms apartments selling at KSh.2.95m, KSh4.95m and KSh 6.5m respectively.

NAIROBI: June 25, 2019: Pan-African housing development financier, Shelter Afrique and Everest Limited have completed the development of the second phase of Everest Park Apartments, a multi-million-shilling property jointly owned by the two companies.

The mixed-use complex located in Mavoko area along Mombasa road targets the growing low to middle-income population with units selling at KSh.2.4m, KSh4m and KSh 5.5m for one, two and three bedrooms respectively.

It consists of 60 one-bedroom units, 100 two-bedroom units, and 40 three-bedroom units.

The project is developed by The Everest Park Development, Joint-Venture between Shelter-Afrique and Everest Limited. The two companies own land upon which the project sits. Shelter Afrique further provided debt to the tune of KSh398 million and a standby facility amounting to KSh50 million.

“The completion of Everest Park Apartments Phase II is a continuation and reinforcement of our relationship and strong partnership with Everest Limited and a testimony of joint commitment to the development of affordable housing in Kenya,” said Shelter Afrique Managing Director & CEO Andrew Chimphondah.

In 2011 Shelter Afrique entered into a partnership with Everest Limited and developed Everest Park Phase I. The 240 units were developed at a cost of KSh755 million, marking the beginning of a long-term partnership between the two organizations.

“We believe unit cost of between KSh2.9.5 million and KSh4.95 million though not very affordable is within reach of many Kenyans, especially those in the middle class. Shelter Afrique aim is to make houses as affordable as KSh1.5 million,” Mr. Chimphondah said.

Everest Limited Managing Director James Muriuki said despite the challenges phased with Phase I of the project, the market was reacting positively to the second phase.

“We have sold 96 of the 200 units with one and two bedroom units being on high demand. We are upbeat about the uptake of the remaining units,” Mr. Muriuki said.

The mixed-use complex boasts of a playground for children, parking space facilities and a commercial centre still under construction.

Nairobi, Kenya – Friday, September 20, 2019: Pan African housing development financier, Shelter Afrique signalled the completion of its turnaround plan as it reported the second-quarter earnings Friday.

The company’s net profit grew modestly to Ksh7.8 million (US$ 78, 000) from a loss of Ksh 500 million (US$ 5.1m) it recorded in the second quarter of 2018, against budgeted loss of Ksh72 million (US$ 0.72m) in the period ending 30 June 2019.

The renaissance was backed by growth in fees and commissions from new projects, performing loan book, and from loan recoveries.

• Net profit grew modestly to Ksh7.8 million (US$ 78, 000) representing a 111% growth against budgeted loss of Ksh72 million (US$ 0.72m) in second-quarter 2019.
• Liquidity position remained stable with average liquidity ratio closing at 21%
• Following the resumption of operations, the Company projects budgeted disbursements of Ksh 3.5 billion (US$35m) in 2019 with a progressive increase over a five-year period.

Appraising the Press in Nairobi, Shelter Afrique Chairman Mr Daniel Nghidinua said, “The positive indicators beginning to merge is a sign that the recovery process and efforts to return the Company to financial sustainability is bearing fruit.”

“Enhanced corporate governance practices, robust enterprise risk management, a new management team, a new strategic plan, a new business model, and debt restructuring plans played key roles in fast-tracking the turnaround process,” Mr Nghidinua said.

Following 2016 disruptive event, Shelter Afrique restructured its business and developed a 5-year strategic plan with a primary focus on turning around the company’s financial performance from loss-making to financial viability by 2020 and overall financial sustainability by 2023.

“The return to profitability ahead of time is an indication that the turnaround strategy has come full circle and is now ready for business,” Mr Nghidinua said.

During the period under review, fee and other incomes, however, grew by 11% to Ksh 80 million (US$0.8m) from recurring fees on performing loan book. Liquidity position remained stable, with the average liquidity ratio above 15% minimum threshold.

However, interest income recorded a 19% decline during the period under review to Ksh 779 million (US$7.79m) due to declining loan portfolio on the back of no new lending for past two-and-half years. Consequently, interest expense decreased by 35% due to lower debt load. Operating expenses also decreased by 9% to US$3.8m as a result of stringent cost-containment measures.

Total assets declined by 26% year-on-year to Ksh 20.8 billion (US$208m) due to decreased loan book. Cash balances, however, rose by 4% to Ksh 400 million (US$4m). Shareholders’ Funds declined by 16% year-on-year to Ksh 11 billion (US$110m) due to the impact of operating losses in last three years and IFRS 9 Transition Adjustment made in December 2018.

“The picture continues to improve with sustained equity capital subscription receipts of Ksh870 million (US$8.7m) to date,” said Shelter Afrique Managing Director Andrew Chimphondah.

Back in business

The Company temporarily halted undertaking of new projects in 2016 to pave the way for the restructuring of its operations and the development of a new strategic direction. It resumed full operations early 2019.

“We have adopted an aggressive approach to business following our resumption of operations this year, which involves getting into meaningful partnerships and doubling our loan recovery efforts. For instances, we have launched some projects across member States and signed several memoranda of understanding with governments and institutions. On loan recovery, we set a target to recover Ksh1.5 billion (USD 15m) by the end of 2019, but we had already recovered Ksh1.3 billion (USD13m) as of today. We hope to reduce our non-performing loans significantly by the end of the year,” Mr Chimphondah said.

Some of the projects the Company has launched this year include Richland Pointe, Everest Apartments, and Karibu Homes in Kenya, and Rugarama housing project in Rwanda. The Company has also invested in the mortgage refinance companies in Kenya, and signed memoranda of understanding (MOU) with the governments of Liberia, Ivory Coast, Central Africa Republic, and Cameroon, for the provision of affordable housing. It has also signed MOUs with Habitat for Humanity International and iBUILD, to enhance its capital-raising efforts.

“Research from our Centre of Excellence (CoE) shows that the overall shortage of housing in Africa is estimated to be 56 million housing units. This shows that the need for Shelter Afrique and like-minded organisations are even more pressing,” Mr Chimphondah said, adding that the Company was on course to deliver on its mandate pegged on implementation of its 5-year strategic plan, which broadly focuses on financial stability, enhanced shareholders value and organisational sustainability

Nairobi: July 23, 2019– Pan African housing development financier, Shelter Afrique has signed a Memorandum of Understanding (MOU) with the Terwilliger Centre for Innovation in Shelter, the market development/system arm of Habitat for Humanity International, which will see TCIS assist Shelter Afrique in mobilizing capital for affordable housing that will be extended to institutions focusing on provision of housing loans to low – middle income population in Kenya and 43 other country where Shelter Afrique has presence.

The collaboration formalized in Nairobi by Shelter Afrique’s Chief Executive Officer Andrew Chimphondah and Habitat for Humanity’s Associate Director for Capital Markets & Financial Inclusion Ms. Elena Milanovska at a signing ceremony, will majorly focus on the establishment of an incremental building fund for Africa, capacity building in housing microfinance, and technical assistance.

• The Memorandum of Understanding (MOU) signed in Nairobi now paves way for the establishment of incremental building fund to support people who cannot afford commercial mortgages but need decent housing.
• The collaboration will also focus on building capacity for institutions offering housing microfinance and providing technical assistance.

In reference to the MOU, Mr. Chimphondah said the partnership now makes it easier for the two institutions to jointly facilitate efficient and inclusive housing market systems with the main objective of making affordable housing a reality across Africa, more so within the lower end of the housing market.

“Research on housing finance options for Africa conducted by our Centre of Excellence has shown that the penetration of housing mortgage throughout Africa is quite low – meaning that the mortgage might not be the right option for low-middle income population. This partnership with Habitat for Humanity International gives Shelter Afrique an opportunity to add other innovative ways to finance housing development in the continent,” Mr. Chimphondah said.

“Our aim is to work with entities like Habitat for Humanity International to set up incremental building fund to support people who cannot afford commercial mortgages but also need decent housing. We want to give Kenyans and other people in our other 43 member states the opportunity to have a dignified living and we believe this fund will make it easy for such people to access financing to build decent houses in their own area,” Mr. Chimphondah added.

Ms. Milanovska said the partnership with Shelter Afrique was a perfect match, adding that Habitat for Humanity International had established USD100million micro-build fund that supplies debt capital and techni¬cal expertise to help microfinance institutions increase the availability of housing loan products for their low-income customers.

“There is shortage of affordable housing and there is also substandard housing. Habitat for Humanity International is excited to sign this partnership deal with Shelter Afrique as we see a lot of potential in addressing the growing deficit in the provision of affordable housing in Africa. ” Ms. Milanovska said

Ms. Milanovska noted that Habitat for Humanity International had invested more than USD 4 million in Africa from the micro-build fund, adding that the partnership with Shelter Afrique will make it easy for the organization to significantly increase its investment in Africa.

Habitat for Humanity International has operations in 12 countries in Africa including Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Egypt, Cote d’ Ivore, Malawi, Ghana, Zambia, Lesotho and South Africa. Shelter Afrique has presence in 44 countries across Africa.

About Habitat for Humanity

Driven by the vision that everyone needs a decent place to live, Habitat for Humanity began in 1976 as a grassroots effort on a community farm in southern Georgia. The Christian housing organization has since grown to become a leading global nonprofit working in local communities across all 50 states in the U.S., and in more than 70 countries.

For more information, please visit https://www.habitat.org

NAIROBI: June 25, 2019: Pan-African housing development financier, Shelter Afrique and Everest Limited have completed the development of the second phase of Everest Park Apartments, a multi-million-shilling property jointly owned by the two companies.

The mixed-use complex located in Mavoko area along Mombasa road targets the growing low to middle-income population with units selling at KSh.2.4m, KSh4m and KSh 5.5m for one, two and three bedrooms respectively.

• The 200 units developed at a cost of KSh 720 million comprise of one, two and three bedrooms apartments selling at KSh.2.95m, KSh4.95m and KSh 6.5m respectively.

It consists of 60 one-bedroom units, 100 two-bedroom units, and 40 three-bedroom units.

The project is developed by The Everest Park Development, Joint-Venture between Shelter-Afrique and Everest Limited. The two companies own land upon which the project sits. Shelter Afrique further provided debt to the tune of KSh398 million and a standby facility amounting to KSh50 million.

“The completion of Everest Park Apartments Phase II is a continuation and reinforcement of our relationship and strong partnership with Everest Limited and a testimony of joint commitment to the development of affordable housing in Kenya,” said Shelter Afrique Managing Director & CEO Andrew Chimphondah.

In 2011 Shelter Afrique entered into a partnership with Everest Limited and developed Everest Park Phase I. The 240 units were developed at a cost of KSh755 million, marking the beginning of a long-term partnership between the two organizations.

“We believe unit cost of between KSh2.9.5 million and KSh4.95 million though not very affordable is within reach of many Kenyans, especially those in the middle class. Shelter Afrique aim is to make houses as affordable as KSh1.5 million,” Mr. Chimphondah said.

Everest Limited Managing Director James Muriuki said despite the challenges phased with Phase I of the project, the market was reacting positively to the second phase.

“We have sold 96 of the 200 units with one and two bedroom units being on high demand. We are upbeat about the uptake of the remaining units,” Mr. Muriuki said.
The mixed-use complex boasts of a playground for children, parking space facilities and a commercial centre still under construction.

About Everest Limited

Everest Ltd is a Kenyan-owned company specializing in real estate development and construction.
www.everest-ltd.com/

Nairobi: July 22, 2019 – Pan-African housing financier, Shelter Afrique has signed a Memorandum of Understanding with the Government of Liberia, which will see the development of affordable housing units with ancillary facilities at VOA and Ricks Institute in Brewerville, Montserrado County, Liberia at a cost USD30 million when completed.

The 1000 housing units are part of Liberian Government national housing drive aiming for 50,000 to 80,000 housing units across all 15 of Liberia’s Counties.

• The MOU envisages construction of 1000 social housing units in five phase.
• The project is estimated to cost USD30 million when completed.
• Units to sell between USD15,000 and USD25,000 when completed.

The MOU was signed in Nairobi by Shelter Afrique Chief Executive Officer Andrew Chimphondah on behalf of the Company and by Liberia’s National Housing Authority Managing Director Ms. Celia Cuffy-Brown, on behalf of the Government of Liberia.
Speaking at the signing ceremony, Mr. Chimphondah said Shelter Afrique had been compelled by the desire to make a difference in the housing sector in Liberia.

“When we visited Liberia we established that more 70% of the Monrovian population are living in slums dwellings and we resolved to make a difference and this has culminated in the signing of the Public Private Partnership agreement with the National Housing Authority on behalf of the government of Liberia. This MOU has created framework for PPP, with defined obligations from the government of Liberia and Shelter Afrique,” Mr. Chimphondah said.

Commenting on the MOU, Ms. Cuffy-Brown said the partnership help government of Liberia address the housing needs in Liberia substantially by boosting the supply of affordable housing to the lower end of the market. Liberia has a population of 4.8 million people and many studies put the country’s annual housing shortage at 512,000 units.

“Our pro-poor agenda puts affordable housing at the heart of Liberia’s national development programme. With this partnership with shelter Afrique, the government will be able to reduce the cost of housing units considerably and provide houses selling as low as USD15, 000 – which I believe will be affordable to many Liberians,” she said.

Under the MOU framework, Shelter Afrique will provide financial solutions through crowding in funders into the project, advisory services, and share research reports emanating from its Centre of Excellence with the National Housing Authority. The National Housing Authority on behalf of the government of Liberia, on the other hand, has committed to providing land & appropriate infrastructure, and providing sovereign guarantee in favour of all co-lenders associated with the project.
The project which is expected to kick off later this year, will be developed in 5 phases, with at least 192 units expected to be completed in the Phase 1. It has been designed to accommodate 40 blocks with each block comprising 24 units. Each unit shall incorporate 2 bedrooms, a living room, a kitchen and a bathroom.

About National Housing Authority

National Housing Authority is a government of Liberia Agency created by an Act of Lagislature in 1960 intended to provide low income housing. The mandate of NHA is to play a principal role in the implementation of the Government’s housing policies and programmes. Its vision is to develop standards, policies and technology to improve housing through formulating public private partnership to access resources for implementing housing projects in Liberia.

 

 

Shelter Afrique, the Pan African Organisation exclusively dealing with affordable housing in Africa and Development Bank of Rwanda (BRD) have today kicked-off the development of 2,000 affordable housing units in Nyamirambo Sector, Nyarugenge District at an estimated cost of cost USD131 million.

The housing units developed by Rugarama Park Estate, a joint venture between Shelter Afrique and the Bank, are in accordance with the City of Kigali masterplan and the affordable housing program under the National Housing Policy.

Speaking at the groundbreaking ceremony, Shelter Afrique Chief Executive Officer Andrew Chimphondah said, like any other country in Africa Rwanda was facing a huge housing backlog, but noted that the challenge was no unsurmountable.

“The housing demand is expected to reach 340,000 units by 2022, mainly for affordable and mid-range housing. This isn’t unique to Rwanda as other countries within the East African Community like Kenya, Tanzania and Uganda are facing similar problems. For instance, Uganda is facing an annual deficit of 1.6 million housing units, Kenya 2 million housing units, and Tanzania 3 million housing units,” Mr. Chimphondah said.

Also speaking at the groundbreaking event, Development Bank of Rwanda Chief Executive Eric Rutabana said the investment was timely as there is a growing housing demand in the country.

“Shelter Afrique is the kind of partner Rwanda needs as the country embarks on provision of affordable housing to its citizens. We are happy to work with them and other partners in providing housing for the growing housing market. The housing project is expected to accommodate close to 14,000 people as well as create hundreds of temporary and permanent jobs,” said Mr. Rutabana.

The Government of Rwanda has currently considered affordable housing as one of its priorities although there are a number of strategic incentives to attract local and international investors in the sector.

The country targets to have 35 per cent of urbanization by 2024 from 18.4 per cent in 2017, the move that will need more dwelling units. Housing experts, however say that due to different challenges, the country has not even managed to satisfy 10 per cent of affordable housing needs.

The project plans to build about 2,800 affordable houses on a-42-hectares piece of land. The high-density estate has been designed to be comfortable, convenient &and dignified. It will have public parks, community buildings, shops and a market place.

Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. The company is owned by 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.

• The Organisation has set a target of $350 million, the total amount of arrears of subscription for the next five years
• Shelter Afrique views the renewed interest in its activities and shareholder engagement as a positive sign

Nairobi: May 30, 2019- Shelter Afrique, the Pan African Organisation exclusively dealing with affordable housing in Africa has rallied members of the African caucus at the UN-Habitat General Assemebly in Nairobi on affordable housing.

In an address to the Ministers of Housing from Member states on the sideline the 2019 UN Habitat General Assembly held in Nairobi, Kenya, Shelter Afrique’s Chief Executive Officer Andrew Chimphondah stressed the importance of affordable housing to the 44-member countries. Shelter Afrique has placed large-scale development at the center of its 2019-2023 strategy. One of the key pillars of the strategy is recapitalization for the organization.

“The matter of affordable housing is personal to us all; decent and affordable housing is a human right and we must see it as that. We are happy to announce some member countries have responded to our capital call, however, it is important to note that we have capital subscription arrears on the 2013 Call of USD 98 million and also look into the fresh Call to raise additional USD 252 made in 2017. The cumulative USD 350 million arrears on 2013 & 2017 Capitals is the main challenge for Shelter Afrique to effectively engage financial markets for further funding,” Mr. Chimphondah said.
He said Shelter Afrique was keen on engaging member countries in arrears with agreed annual payment plans and also inviting active existing member countries to increase their shareholding in the organisation.
“We are also keen on inviting new member countries to join as shareholders and our current target countries include Egypt, Angola, Ethiopia, and Mozambique. We are also targeting Non-African countries and institutions such as China, CDC, housing corporations under Class “C” Shares category,” Mr. Chimphondah said.

Funding options

Mr. Chimphondah said the company was considering both equity and debt options to fund its operations in the next five years of its strategic plan, through direct funding (line of credit), co-financing and bridge finance for working capital lines.
“We are also in the process of identifying active member countries for local currency bonds backed by appropriate starting 2021. Upon restoration of equivalent of Moddy’s Ba1 credit rating, we will also consider tapping into Eurobond market for modest ticket issues of US$300 million on committed project lines,” Mr. Chimphondah explained.

He implored shareholders to support company fund raising strategy through commitment to capital allocations through signing of pledge agreements, inclusion of capital arrears in their respective national budget, and stronger liaison between housing ministries and finance ministries to ensure timely payment of capital arrears and any additional subscription. This meeting with the Africa caucus comes a few weeks ahead of the Annual General Meeting in Morocco where shareholders will be reviewing the progress of the company and focusing on social housing as a matter of policy.
Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. The company is owned by 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.

• The housing units were developed in partnership with Karibu Homes Parktel to make affordable housing more accessible
• The pan-African housing financier intends to replicate the model of delivery in other projects of similar nature

Shelter Afrique the Pan-African Housing Financier dealing exclusively with the promotion of affordable housing in partnership with Karibu Homes Parktel, has completed and officially launched the second phase of the housing project at Riverview Estate, in Athi River.

The 288 units developed by Karibu Homes in the second phase of the project, was funded by Shelter Afrique at a cost of KSh 355 million. This brings the total number of affordable housing units developed by Karibu Homes and funded by Shelter Afrique to 569 at a total cost of KSh 667 million.

Speaking at the hand-over ceremony, Shelter Afrique Chairman Daniel Nghidinua said the project was initiated to address acute housing shortage in the housing market.

“Housing shortage in Kenya is estimated between 150,000 and 200,000 units in urban areas and more than 300,000 units in rural areas yearly, government has responded to this reality with the Big Four Agenda and we as a key player have responded with a new strategy anchored on the delivery of large-scale housing,” Mr. Nghidinua said.

“With Karibu Homes, we are working with a trusted partner, our partnership has demonstrated the capacity available for delivery of affordable homes in Kenya. We have financed the development the 569 affordable units which have been delivered in the two Phases. We are eager to replicate the model of delivery elsewhere,” Mr. Nghidinua noted.

The prices range from KSh1.7m to KSh6.9 for different units.

Mr. Nghidinua said Shelter Afrique will continue to expand low cost housing projects to increase access to low-income populations.

Affordable housing is one of the key pillars of President Kenyatta’s government. The other pillars under the Big Four Agenda are manufacturing, Universal healthcare and food security-all aimed at boosting Kenya’s development, creating wealth and employment.