We partner with real estate developers to provide equity finance for affordable residential properties.
At IHS, we partner with real estate developers who have a proven track record of success, strong organizational capacity, and the financial resources necessary to execute on proposed transactions. This approach enables us to minimize risk and ensure that we are investing in projects that have the potential to deliver both social and financial returns.
If you have a project that you believe aligns with our investment strategy, we encourage you to get in touch with us at info@IHSInvestments.co.za
All proposed transactions are evaluated in terms of their commercial viability, and are subject to our due diligence process and investment committee review. By carefully evaluating each opportunity, we can ensure that we are making sound investment decisions that deliver value for both our developer partners and our investors while creating positive impact in the communities we serve.
Products
At IHS, we specialize in providing equity investments for the development of affordable for-sale or rental properties. Our investments are made in collaboration with our developer partners, who provide their own equity, and leverage local debt to finance the project.
We focus on investing in greenfield and brownfield construction projects (including conversions) that are typically located in large urban areas which are located close to transport nodes, social & retail amenities, and employment opportunities. In addition to equity investments, we also acquire turnkey developments from experienced developers. All developments are climate-friendly recieving green certification through IFC EDGE.
Our investment strategy is designed for long-term success, with exits planned through the sale of developed homes or the sale or listing of rental properties on a unit-by-unit basis or as a portfolio.
Process
Our investments undergo a thorough approval process which includes:
- Initial deal screening by the Investment Management team, Technical and ESG Speciliasts and Asset Management for the early identification of suitable deals.
- Prelimary review by our Investment Committee prior to due diligence.
- A full due diligence process, including market studies and financial modelling to determine the best structure for the proposed transaction.
- Final approval by the Investment Committee.
- Negotiation and execution of the relevant legal documents.
- Deal closing and project funding.
The time required from initial screening to closing depends on a number of factors. It generally takes between one and three months to close most transactions following the preliminary approval by Investment Committee. More complex deals may take longer.
