Category: news-room

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.

• 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.