Developer Partners

Overview of the Investment Process

The R1.9 billion Fund was formed to invest in housing development projects and housing sector companies that primarily serve the approximately five million South African households - the so-called "missing middle" - whose income is too high to qualify for public sector housing programmes, yet too low to afford most market rate housing. Typically, these households are earning between R3,500 and R15,000 (approximately $500 - $2,142) per month. IHS invests in development projects that aim to bridge the gap between supply and demand for housing in this market, estimated at a current projected shortfall of about 600,000 to 800,000 (sale or rental) units annually. IHS works with developer partners who have the reputations, organizational structures, track records and financial capacity to execute the proposed transactions and property types.

The typical way in which we structure our investments is illustrated in the IHS Development Organogram. Additional information is available in the IHS Marketing Brochures.

If your project fits the parameters of an IHS investment, you may email us at infosa@intlhousingsolutions.com; or contact our Deal Team telephonically. If appropriate, an experienced Team Member will contact you and inform you of the information we require. Submissions are appraised as investments and decisions are made on a strictly commercial basis.

Our staff will carefully explain the due diligence and investment procedures followed to close the transaction, execute the necessary legal documentation and disburse funds to the project.

The investment process is a two-step approval process:

Review Committee – An initial review by the Investment Committee of data provided with the Information Checklist and other information requested by IHS deal team. If approved, IHS will proceed to full due diligence, underwriting, and financial modelling of the transaction.
Investment Committee – Once the due diligence is completed, legal documentation has begun, and the financial modelling and structure (debt financing, guarantee, etc) are in place, the transaction will be submitted to the Investment Committee for approval. Once approved, the legal documentation will be completed, signed and the transaction will be closed and funds disbursed (if applicable).

The time it will take from the initial review to closing any transaction depends on a number of factors and there is no way to definitively state how long the process will take. However, in general, it should take between one and three months to close most transactions once they are approved by the Review Committee. For complicated transactions, the time period may be substantially longer.