Institutional investors focus on affordable housing in South Africa | Biz weekly

International institutional investor IHS recognises the potential of developing affordable housing, also called gap housing, in African markets. The investor launched its IHS Fund II in 2013, following the success of the company’s first fund, the SA Workforce Housing Fund (SAWHF). The US$230 million SAWHF enabled the financing and development of more than 28,000 homes with a combined total value of more than R8.6 billion (€ 580 million) throughout SA. 

IHS says that its step to invest in affordable housing “not only opened up a valuable new asset class for investors, but ensured that thousands of families were able to afford a home of their own and start their journey to wealth creation through property ownership.” 

IHS is a private equity firm that partners with financial institutions, real estate developers, private capital groups and local government authorities to provide equity finance for residential projects, primarily in the affordable housing market. 

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