Investors

Fund Strategy

We seek opportunities where there is rapid growth in housing demand that is not being met by existing supply.  Our investment strategy is tailored to local market conditions where economic and political conditions are supportive of development and private market investments.

We are committed to partnering with local companies to make the best use of existing capacity, while minimizing investment risk. We help build organizational strength among these local housing market participants to pave the way for further economic growth and to foster international partnerships.

Our investments are diversified across geographic regions and product types.  We aim to go beyond simply building housing units to creating sustainable communities through our mixed-income and mixed-use development model.

Investors

Exit Strategy

The typical duration of individual property investments is between five and seven years, with all investments fully exited by the maturity of the fund.

The current residential real estate market supports investment dispositions in South Africa and our target countries in Sub-Saharan Africa, driven by a significant shortage of developed homes and robust sales or listings of rental portfolios.

Impact

At International Housing Solutions, we focus on developing sustainable communities that make a significant difference in the lives of their residents.

An independent social impact study, conducted by the University of Cape Town, found that the high-quality and well-located housing developed by our first multi-investor fund (“SAWHF”) had had a profound impact on the lives and overall welfare of the residents.  Over 72% of the households polled said their lives had improved significantly.  Highlights from the SAWHF social impact study include the following:

  • The investments created a significant number of jobs, the vast majority of which were filled by previously disadvantaged individuals and 10% by women.
  • Over the life of the fund, the study estimated that 100,000 jobs would be created, many of which are expected to become permanent.
  • Almost all of the previously disadvantaged workers employed by our projects were unskilled and came from the local communities in which our developments are located.
  • The fund investments have unlocked major public sector funding through infrastructure, subsidies and guarantees.
  • Over three-quarters of the fund capital was invested in low-income areas.

Job Creation

  • The impact of the fund equates to jobs for more than 4000 people at present, of whom 85% are considered previously disadvantaged and 10% are women.
  • An independent report estimates that 100 000 jobs will be created over the life of the fund, of which 5 000 per annum are expected to become permanent.
  • Almost all of the previously disadvantaged workers who were employed in our projects were unskilled and came from the local communities in which our developments are located.

Economic Growth & Development

  • The SAWHF has investments valued at more than $230 million, and we have unlocked major public sector funding through infrastructure, subsidies and guarantees.
  • 82% of our funds are invested in low-income areas.

Environment, Social, & Governance (“ESG”)

IHS implements the International Finance Corporation’s (“IFC”) Performance Standards for Social and Environmental Assessment in all our projects.

Social

Beyond the positive social impact of our communities, IHS provides ongoing support and funding for a variety of social development programs, including learnerships and employment for women with diabilities, mentorship and job creation for disadvantaged entrepreneurs, and student services.  We also provide quarterly and annual social impact reports that track the impact and performance of our closed transactions.

Environmental

IHS Fund II, our latest multi-investor fund, is focused on investing in green housing units that are certified to meet IFC’s EDGE standards.  More information on IFC’s EDGE program can be found at www.edgebuildings.com.

Governance

IHS maintains a rigorous system of governance and detailed reporting for its funds to keep investors well-informed by:

  • Providing transparent and clearly structured internal processes;
  • Ensuring investors have key approval rights;
  • Facilitating regular site visits;
  • Providng detailed quarterly reports;
  • Hosting annual advisory committee meetings;
  • Preparing financial statements audited by one of the “big four” international audit firms; and
  • Obtaining internal and third-party valuations of all investments.