Gauteng Partnership Fund
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Student Accommodation Fund

Gauteng Partnership Background

The Gauteng Partnership Fund (GPF) was established by the Gauteng Department of Housing to address funding challenges in the affordable housing sector.

The GPF assists the affordable housing sector by:

  • Providing public funding as equity cushion to investors.

  • Risk sharing and co-funding with prospective funders.

On a project-by-project basis, GPF will assist the student housing entities to procure finance at the most favourable terms in order to promote affordable, quality accommodation that is well managed for the target market

Product Offerings

The GPF seeks to continually develop products aimed at addressing housing market funding challenges. GPF products are reviewed annually to determine their effectiveness.

Student Accommodation Fund

The Student Accommodation Fund was developed for student housing entities that require additional funding in to the project. The equity type loan enhances the debt to equity ratio for projects to enable lenders to finance, on favourable terms.

Who Qualifies

Any company or project Special Purpose Vehicle (SPV) with a recognised legal form that provides affordable student accommodation that is well managed.

The entity must demonstrate to GPF that they have the technical resource capacity to successfully complete the project as well as efficiently manage the property thereafter.

Types of Projects

  • Inner-city residential refurbishments
  • Conversion of offices to residential units
  • Greenfiled developments.


 

Exposure

GPF investment of up to 20% or 30% of the total project costs depending on the discretionary assessment of project needs.

Investment Term

15 - 20 years depending on project cashflows and company BEE levels.

Investment Pricing

Minimum of Johannesburg Interbank Agreed Rate (JIBAR) plus a margin.

Investment Instrument

Subordinated debt.

Security

  • Mortgage Bond
  • May require personal sureties

Client Contribution

  • Minimum 10% of project cost depending on project cashflows and company BEE levels

Documentation Required

  • Comprehensive Business Plan (Recommended business plan framework is available on request)
  • Company registration documents
  • Tax clearance certificate
  • Essential project information
  • Copy of latest Audited Finacial Statements
  • Shareholders statement of assets and liabilities may be requested

For more information please contact:

Student Accommodation Fund: Shiraaz Lorgat telephone: 011 685 6600 email: shiraazl@gpf.org.za