urbanis corporate presentation 2012

“A Vision for inclusive housing in Africa”

Agenda

1. Low income housing Gap

2. Vision/Mission

3. Urbanis Solution

4. Business Model

5. Service Offering

6. Management Team

7. Operating Model

8. Portfolio/Track Record

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Agenda

Low income housing Gap1

Vision/Mission2

Urbanis Solution3

Business Model4

Service Offering5

Management Team6

Operating Model7

Portfolio/Track Record8

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• The African population is growing at a rate of 2.4% a year.

• It is estimated that by 2030, 50% of Africans will live in cities;

• The African workforce will reach 1.1 billion people by 2040 - the largest in the world ( McKinsey);

• And by 2050, Africa will be home to 1.9 Billion people.

Africa’s explosive demographic growth

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AfricaIndiaChina

Latin AmericaSouth East AsiaEurope

North America

Japan

Africa’s workforce will become the world’s largest by 2040Size of the working-age population (Million)

• The African population is growing at a rate of 2.4% a year.

• It is estimated that by 2030, 50% of Africans will live in cities;

• The African workforce will reach 1.1 billion people by 2040 - the largest in the world ( McKinsey);

• And by 2050, Africa will be home to 1.9 Billion people.


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AfricaIndiaChina

Latin AmericaSouth East AsiaEurope

North America

Japan

Africa’s workforce will become the world’s largest by 2040Size of the working-age population (Million)

• By 2040 Africa is expected to be the 2nd most urbanized continent after China.

• At current urbanization rates, an additional 14 million housing units per annum are needed in order to accommodate the increasing urban Demand.

• 62% of the populations living in Africa’s cities (32 million households) live in informal housing where basic services are poor or non-existent.


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Africa is almost as urbanized as China and has as many cities of 1 million people as EuropeShare of rural vs. urban population by region, 2010 (%. Million)

SOURCE: United Nations; McKingsey Global Institute

100% =

Rural

Urban

1,219 1,032 1,351 830 594 349

48 52 109 52 63 48Cities with >1 million people

Africa faces a large gap in low income housing

REGION DEMAND SUPPLY

Sub-Saharan Africa

• 32 million households in Sub-Saharan Africa are considered inadequate.

• Under current urbanisation rates , an additional 14 million housing units per annum are required

• 308 million people; 191 million of whom live in inadequate housing.

Kenya• 60% of households are considered ‘inadequate’

housing and are located in slums.• 150,000 units are required per year

• Less than 30,000 units supplied per year• The annual deficit is thus more than 120,000 housing units

per year

Ghana• Ghana’s annual demand for housing currently

stands at 120,000 housing units per annum• Current housing supply provides 42,000 units per annum

which is only 35% of the demand

Nigeria

• 33.6 million Nigerians living in urban areas (46% of the urban population) are considered to be living in inadequate housing

• The annual deficit is 16 million units• 720,000 units need to be created annually to meet the

demand • Current supply is however meeting only 3% of this demand

Tanzania• 80% of the entire population is living in

unplanned, informal housing.• The housing deficit in urban areas is estimated at 1.2 million

units.

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Africa faces a large gap in low income housing

REGION DEMAND SUPPLY

Sub-Saharan Africa

• 32 million households in Sub-Saharan Africa are considered inadequate.

• Under current urbanisation rates , an additional 14 million housing units per annum are required

• 308 million people; 191 million of whom live in inadequate housing.

Kenya• 60% of households are considered ‘inadequate’

housing and are located in slums.• 150,000 units are required per year

• Less than 30,000 units supplied per year• The annual deficit is thus more than 120,000 housing units

per year

Ghana• Ghana’s annual demand for housing currently

stands at 120,000 housing units per annum• Current housing supply provides 42,000 units per annum

which is only 35% of the demand

Nigeria

• 33.6 million Nigerians living in urban areas (46% of the urban population) are considered to be living in inadequate housing

• The annual deficit is 16 million units• 720,000 units need to be created annually to meet the

demand • Current supply is however meeting only 3% of this demand

Tanzania• 80% of the entire population is living in

unplanned, informal housing.• The housing deficit in urban areas is estimated at 1.2 million

units.

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Vision for African housing

The response to the African urban explosion must not be, more unplanned and poorly serviced developments.

Africa should learn from the mistakes of many European and American cites that allowed the development of social enclaves, which became the source of insecurity, social tension and frustration for the low income population.

The demand for housing should be met through the development of suburban mixed income communities that offer a healthy social environment, and economic opportunities.

The vision of Urbanis Africa is to enable the ordinary Africans, most of whom are active in the informal sector, to acquire a house within their financial means and raise their families in a safe, clean, healthy environment with access to world class education and economic opportunities. In so doing, Urbanis achieves social impact, environmental and financial returns.

Urbanis aims to implement its model across the African continent, and will encourage many developers to emulate its model.

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Vision for African housing

The response to the African urban explosion must not be, more unplanned and poorly serviced developments.

Africa should learn from the mistakes of many European and American cites that allowed the development of social enclaves, which became the source of insecurity, social tension and frustration for the low income population.

The demand for housing should be met through the development of suburban mixed income communities that offer a healthy social environment, and economic opportunities.

The vision of Urbanis Africa is to enable the ordinary Africans, most of whom are active in the informal sector, to acquire a house within their financial means and raise their families in a safe, clean, healthy environment with access to world class education and economic opportunities. In so doing, Urbanis achieves social impact, environmental and financial returns.

Urbanis aims to implement its model across the African continent, and will encourage many developers to emulate its model.

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Mission and Objectives

The mission of Urbanis Africa is to enable the majority of Africans living in cities to have an opportunity to own a house, work and raise a family, in a clean and family-friendly environment.

The Company’s objectives are as follows:•Develop planned mixed income communities across the continent that implement state of the art, low carbon footprint technology

•Provide a ‘one-stop shop’ approach to delivering housing solutions, by building partnerships with all the players in the value chain, including the commercial banks.

•Design inclusive solutions to unlock mortgage financing for informal sector borrowers and;

•Deliver affordable housing within a profitable business model.

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Urbanis Solution

Urbanis Africa contributes to resolving the problem of affordable housing in Africa using the following tools;•Cross subsidization: Achieve affordability through mixed income housing communities, and apply cross subsidization between middle and low income housing units.

•Collaboration: Create a network of partners around each project including designers, contractors, bankers, financiers etc.

•Rapid construction: Accelerate the speed of construction through the use of pre-cast concrete.

•Low cost of ownership: Reduce recurring cost to owner by using green technology ( Waste recycling, Solar energy, rain water storage etc..)

•Building at the periphery: Urbanis achieves affordability by building integrated housing communities with Residential, Economic and Social amenities at the periphery of large urban centers.

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Achieving Socio Economic Value

Urbanis Africa aims to maximize socio economic value ….

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• Average project IRR of 25%

• Minimum Project profit margin of 20%.

• Average payback period, 4 years.

Financial Return

• Create local Employment

• Provide low income housing

• Create Economic opportunities

• Provide better education

Social Return

• Economic Benefit for Investors.

• Economic Benefits for home buyers (affordability)

• Economic Benefits for the community

• Social Benefit for the residents

• Social Benefits for the community

Socio Economic Value

Socio Economic Value Proposition

Risk Management

Environmental Returns

• Create local Employment

• Provide low income housing

• Create Economic opportunities

• Provide better education

• Solar Powered public areas

• Recycled waste water

• Rain water capture

• Recycled Solid Waste

• 40% of property reserved for green spaces.

Business Model

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Urbanis’ Africa is a real estate developer specialized in bottom-of-the-pyramid residential and commercial projects.

Urbanis sets up a Special Purpose Vehicle (SPV) for each project it initiates and brings to each project a different group of investors and lenders who are exposed exclusively to a single project.

As a developer, Urbanis takes an equity participation in its projects. It is remunerated through developer's fees and sweat equity.

ArchitecturalDesign

Financial Structuring

ProjectManagement

Supply Chain Management

EquityInvestment

Operational Management

Construction Technology

Business Model

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Urbanis’ Africa is a real estate developer specialized in bottom-of-the-pyramid residential and commercial projects.

Urbanis sets up a Special Purpose Vehicle (SPV) for each project it initiates and brings to each project a different group of investors and lenders who are exposed exclusively to a single project.

As a developer, Urbanis takes an equity participation in its projects. It is remunerated through developer's fees and sweat equity.

ArchitecturalDesign

Financial Structuring

ProjectManagement

Supply Chain Management

EquityInvestment

Operational Management

Construction Technology

Business Model

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• Urbanis’ Africa is a real estate developer specialized in bottom-of-the-pyramid residential and commercial projects.

• Urbanis sets up a Special Purpose Vehicle (SPV) for each project it initiates and brings to each project a different group of investors and lenders who are exposed exclusively to a single project.

• As a developer, Urbanis takes an equity participation in its projects. It is remunerated through developer's fees and sweat equity.

The company builds alliances and partnerships across the value chain, hence creating a microcosm that addresses the housing problem holistically.

Equity InvestorQuasi – Equity Investors

Financiers(Debt)

SPV (Country Specific)

ContractorLocal Investor

Government

MortgageBanks

MFI’s

Home Buyer

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Business Model (continue)…

The company builds alliances and partnerships across the value chain, hence creating a microcosm that addresses the housing problem holistically.

Equity InvestorQuasi – Equity

InvestorsFinanciers

(Debt)

URBANIS

SPV (Country Specific)

ContractorLocal Investor

Government

MortgageBanks

MFI’s

Home Buyer

18

Business Model (continue)…

Service Offering

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• Urbanis’ Africa Provides services that span across the entire development value chain.

• The company manages projects from inception to post completion management.

• Urbanis Africa provides the management services through subsidiaries that it establishes in countries where the projects are located.

Service Offering

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• Urbanis’ Africa Provides services that span across the entire development value chain.

• The company manages projects from inception to post completion management.

• Urbanis Africa provides the management services through subsidiaries that it establishes in countries where the projects are located.

PROJECTORIGINATION

FEASIBILITYSTUDY

MASTERPLANNING

ARCHITECTURAL & TECHNICAL

DESIGNFINANCIAL

STRTUCTURING

PROJECTFUNDING

PROJECTMANAGEMENT

PROPERTYMANAGEMENT

Integrated Service Offering

Urbanis provides and integrated suite of services that enables the company to manage bottom-of-the-pyramid residential and commercial projects from inception to post delivery across Africa.

Real Estate Development

Financial Structuring ConstructionProperty

Management

• Project Conceptual Design

• Architectural and technical design

• Project development

• Project Execution and Management

• Sales and Marketing

• Project Financial feasibility

• Financial Modeling

• Financial restructuring

• Sourcing of Equity and Debt funding

• Financial Management of projects

• Rapid construction based on precast concrete and form work.

• Estate Management

• Commercial Assets Management

• Utility and Waster Management

• Community Projects

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Financial Solution Point

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The process of buying a home in riddled with complexity and insurmountable obstacles.

Urbanis offers a one stop shop solution for acquiring an affordable home in Africa.

Urbanis Africa has launched a service that enables the clients to receive advise on the financing their home and obtain hands on assistance in the mortgage application process.

Ur-Homes interactive Platform

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Urbanis Africa has launched a powerful marketing channel – Ur-Homes.com

Ur-Homes.com also includes general information about the real estate market in Africa and about financing options available to Africans.

The interactive Web Platform enables African seeking to acquire an affordable home from Urbanis Africa to select, purchase and finance the home online.

Ur-Homes interactive Platform

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• Urbanis Africa has launched a powerful marketing channel – Ur-Homes.com

• The interactive Web Platform enables African seeking to acquire an affordable home from Urbanis Africa to select, purchase and finance the home online.

• Ur-Homes.com also includes general information about the real estate market in Africa and about financing options available to Africans.

Competent Management Team (1/3)

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• Founder and CEO of Urbanis Africa• 12 Years experience in Impact Investing and Private Equity • Bachelor in Computer Science from ESGI (Paris)• Bachelor in Finance from ESG (Paris) • Executive MBA from the Georgia Institute of Technology

• 30 Years experience in project finance, large scale project management, real estate and manufacturing.

• MBA from University of Nairobi, Bachelor of from Newcastle University, UK

• 20 years experience in all aspects of property management, construction and valuation.

• B.A. Land Economics (Hons) degree from University of Nairobi

FRANCIS OTIENOChief Operations Officer

JAKOYO PATRICK AIROChief Operating Officer

Kenani

WAGANE DIOUFCEO

• 15 years experience in – construction project management– market and feasibility studies generation– design development– commercial & construction management processes

• Bachelor of Science in Construction Management and Business Management from John Brown University- USA.

CLAIRE ANAMIConstruction Manager


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• Communications expert with 9 years experience in CSR. • Key achievements:

– Launched Ministry of Health’s malaria prevention campaign at 85% awareness– Development and implementation of Kenya Constitution Committee of Experts’

nationwide campaign “Jisomee, Jiamulie, Jichagulie, at 90% awareness – Planning and implementing G-Pange HIV Initiative by AMREF.

• Bachelor of Arts in Communication from Daystar UniversityJESSICA RUTTOCorporate Social

Responsibilities Manager

• 12 years experience in construction industry – procurement coordination of contractors– site log preparation– tracking construction project expenditures– cost value reconciliation

• Holds a Degree in Civil Engineering from Kenya Polytechnic.BEATRICE WANJIKU

Chief Procurement Officer

• Responsible for group accounting and Finance• 27 years practical experience in senior level Management in Accounting and Financial

Administration• Certified Public Accountant of Kenya (CPAK) and holds a B.Comm degree in Accounting

from the University of Nairobi.

• Responsible for group sales and marketing• 10 years experience in residential and commercial real estate in Kenya.• Post Graduate degree in Real Estate Agency and Property Management,

University of Nairobi

JACOB ORIOKIChief Financial Officer

CATHERINE WAREGAChief Marketing officer


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• Financial analysis & structuring

• Progressive experience in financial analysis & structuring

• University of Southern California with Masters degrees in Economics and Corporate Finance

• Group Corporate Legal Officer• Advocate of the High Court• Extensive litigation and

Corporate law practice in the field of conveyancy

JEREMY CHILDRESS Financial Analyst

FRANCISCA WANBUACorporate Lawyer

Governance/Ownership Structure

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Kenani Housing Co.(SPV)

Jamii Bora Makao(SPV)

SPV SPV

Urbanis Africa(Nairobi)

Executive Management

Urbanis Sweden(Stockholm)

EquityEquity

Equity +Management Contract

Management contract Equity +Management Contract

• Operating Company: Jamii Bora Makao.

• Location: Kaputiei within Kisaju Town off Namanga Road, 60 Kms from Nairobi CBD.

• Description: Mixed income community targeting 2,000 residential units and 2,000 and 1,164 commercial units.

• Price range: KShs. 1.2 million ($14,000) to KShs. 5 million ($58,000)

• Additional Amenities: Police, Clinic, Primary and secondary schools,

• Total project Cost: KShs. 5 Billion

• Stage: To date 780 houses have been built and sold.

Portfolio – Kisaju View Park I

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• Operating Company: Kisaju View Park Limited

• Location: Located on the Pipeline Road near the Isigna junction. 50 Kms from Nairobi CBD.

• Description: Mixed income community targeting 1,000 residential units and 200 commercial units.

• Price range: KShs. 1.5 million ($15,000) to KShs. 5 million ($58,000)

• Additional Amenities:

• Total project Cost: Project is at design stage

• Stage: Closing December 2012 – Ground Breaking

Portfolio – Kisaju View Park II

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• Operating Company: Kenani Housing Company Ltd.

• Location: Lukenya, near Athi River, located 37 kilometers south east of Nairobi CBD, on a 230 acres plot of land.

• Description: Mixed income community targeting 2,400 residential units ( apartments and Maisonettes) and 1,000 commercial units in Phase I.

• Price range: KShs. 1.6 million ($16,000) to KShs. 7.0 million ($82,000)


• Total project Cost: KShs. l 6 Billion

• Stage: Financial closing projected in December 2012. Ground breaking April 2013.

Portfolio – Kenani Housing Company

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• Operating Company: Lukenya Housing Company Ltd

• Location: Lukenya, near Athi River, located 37 kilometers south east of Nairobi CBD, on a 100 acres plot of land.

• Description: Mixed income community targeting 2,400 residential units ( apartments and Maisonettes) and Retail area.

• Price range: KShs. 1.6 million ($16,000) to KShs. 6.0 million ($82,000)

• Additional Amenities:

• Total project Cost: Project is at design phase.

• Stage: Financial closing projected in March 2013. Ground breaking June 2013.

Portfolio – Lukenya Housing Company

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• Operating Company: Kisaju Mall ltd

• Location: Kisaju (10k from Kitengela) on the Namaga Road.

• Description: 20 Acres Commercial Complex including shopping mall, Amusement Park, Hotel and office space.

• Price range: The project is at design stage. Prices will be established shortly.


• Total project Cost: TBD

• Stage: Financial closing projected in April 2013. Ground breaking June 2013.

Portfolio – Kisaju Shopping Mall

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Urbanis Africa Limited.5th Floor, Contrust HouseMoi AvenueP.O. Box 57618-00200NAIROBI

Tel: Email: [email protected]: www.urbanisafrica.com

mailto:[email protected]

http://www.urbanisafrica.com/