urbanis corporate presentation

7/28/2019 Urbanis Corporate Presentation

1/23

A Vision for inclusive

housing in Africa


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Agenda

Low income housing Gap1

Vision/Mission2

Urbanis Solution3

Business Model4

Jamii Bora Makao5

Development Planning6

Financing7

Property Management8

2


3/23

The African population is growing at a rate of2.4% a year.

It is estimated that by 2030, 50% of Africans willlive in cities;

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

And by 2050, Africa will be home to 1.9 Billion

people.

Africas explosive demographic growth

3

0

200

400

600

800

1,000

1,200

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

Africa

India

China

Latin AmericaSouth East AsiaEurope

North America

Japan

Africas workforce will become the worlds largest by2040Size of the working-age population (Million)


4/23

By 2040 Africa is expected to be the 2nd mosturbanized continent after China.

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

62% of the populations living in Africas cities

(32 million households) live in informal housing

where basic services are poor or non-existent.

Africas explosive demographic growth

4

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

30 40 4573 79 82

70 60 5527 21 18

India Africa China Europe LatinAmerica

NorthAmerica

100% =

Rural

Urban

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

48 52 109 52 63 48Cities with >1

million people


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Africa faces a large gap in low income housing

REGION DEMAND SUPPLY

Sub-SaharanAfrica

32 million households in Sub-Saharan Africa areconsidered inadequate.

Under current urbanisation rates , an additional14 million housing units per annum are required

308 million people; 191 million of whom live in inadequatehousing.

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 unitsper year

Ghana Ghanas 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 tobe 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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6/23

Vision for African housing

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

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

The demand for housing should be met through the

development of suburban mixed income communities that offera 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 ahouse within their financial means and raise their families in asafe, clean, healthy environment with access to world class

education and economic opportunities. In so doing, Urbanisachieves social impact, environmental and financial returns.

Urbanis aims to implement its model across the Africancontinent, and will encourage many developers to emulateits model.

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7/23

Mission and Objectives

The mission of Urbanis Africa is to enable themajority of Africans living in cities to have an

opportunity to own a house, work and raise afamily, in a clean and family-friendly environment.

The Companys objectives are as follows:

Develop planned mixed income communities acrossthe 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 allthe players in the value chain, including thecommercial banks.

Design inclusive solutions to unlock mortgage

financing for informal sector borrowers and;

Deliver affordable housing within a profitablebusiness model.

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8/23

Urbanis Solution

Urbanis Africa contributes to resolving theproblem of affordable housing in Africa using the

following tools;

Cross subsidization: Achieve affordability throughmixed income housing communities, and apply crosssubsidization between middle and low incomehousing units.

Collaboration: Create a network of partners around

each project including designers, contractors,bankers, financiers etc.

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

Low cost of ownership: Reduce recurring cost toowner by using green technology ( Waste recycling,

Solar energy, rain water storage etc..)

Building at the periphery: Urbanis achievesaffordability by building integrated housingcommunities with Residential, Economic and Socialamenities at the periphery of large urban centers.

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9/23

Achieving Socio Economic Value

Urbanis Africa aims to maximize socio economic value .

9

Average project IRR of 25%

Minimum Project profitmargin of 20%.

Average payback period,4 years.

Financial Return

Create local Employment

Provide low income housing

Create Economicopportunities

Provide better education

Social Return

Economic Benefit forInvestors.

Economic Benefits forhome buyers

(affordability) Economic Benefits for the

community

Social Benefit for theresidents

Social Benefits for thecommunity

Socio Economic Value

Socio Economic Value Proposition

Risk Management

Environmental Returns

Create local Employment

Provide low income housing

Create Economicopportunities

Provide better education

Solar Powered public areas

Recycled waste water

Rain water capture

Recycled Solid Waste

40% of property reservedfor green spaces.


10/23

Business Model

10

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 eachproject it initiates and brings to each project a different groupof investors and lenders who are exposed exclusively toa single project.

As a developer, Urbanis takes an equity participation in its

projects. It is remunerated through developer's fees andsweat equity.

ArchitecturalDesign

FinancialStructuring

ProjectManagement

Supply ChainManagement

EquityInvestment

OperationalManagement

ConstructionTechnology


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

Equity InvestorQuasi EquityInvestors

Financiers(Debt)

SPV(Country Specific)

ContractorLocal Investor

Government

MortgageBanks

MFIs

Home Buyer

11

Business Model (continue)


12/23

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

Equity InvestorQuasi Equity

InvestorsFinanciers

(Debt)

URBANIS

SPV(Country Specific)

ContractorLocal Investor

Government

MortgageBanks

MFIs

Home Buyer

12

Business Model (continue)


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Service Offering

13

Urbanis Africa Provides services that span across the entire

development value chain.

The company manages projects from inception to postcompletion management.

Urbanis Africa provides the management services throughsubsidiaries that it establishes in countries where theprojects are located.

PROJECTORIGINATION

FEASIBILITYSTUDY

MASTERPLANNING

ARCHITECTURAL& TECHNICAL

DESIGNFINANCIAL

STRTUCTURING

PROJECTFUNDING

PROJECTMANAGEMENT

PROPERTYMANAGEMENT


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Integrated Service Offering

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

Real Estate

DevelopmentFinancial Structuring Construction

Property

Management

Project ConceptualDesign

Architectural andtechnical design

Project development

Project Execution andManagement

Sales and Marketing

Project Financialfeasibility

Financial Modeling

Financial restructuring Sourcing of Equity and

Debt funding

Financial Managementof projects

Rapid constructionbased on precastconcrete and formwork.

Estate Management

Commercial AssetsManagement

Utility and WasterManagement

Community Projects

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15/23

Financial Solution Point

15

The process of buying a home in

riddled with complexity andinsurmountable obstacles.

Urbanis offers a one stop shopsolution for acquiring an affordablehome in Africa.

Urbanis Africa has launched a service

that enables the clients to receiveadvise on the financing their homeand obtain hands on assistance in themortgage application process.


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Ur-Homes interactive Platform

16

Urbanis Africa has launched a powerful marketingchannel Ur-Homes.com

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

Ur-Homes.com also includes general informationabout the real estate market in Africa and aboutfinancing options available to Africans.


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Governance/Ownership Structure

17

Kenani Housing Co.

(SPV)

Jamii Bora Makao

(SPV)

SPV SPV

Urbanis Africa

(Nairobi)

ExecutiveManagement

Urbanis Sweden(Stockholm)

EquityEquity

Equity +Management Contract

Management contract Equity +Management Contract


18/23

Operating Company: Jamii Bora Makao.

Location: Kaputiei within Kisaju Town offNamanga Road, 60 Kms from Nairobi CBD.

Description: Mixed income communitytargeting 2,000 residential units and 2,000and 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 beenbuilt and sold.

Portfolio Kisaju View Park I

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19/23

Operating Company: Kisaju Plains Limited

Location: Located on the Pipeline Road nearthe Isigna junction. 50 Kms from NairobiCBD.

Description: Mixed income communitytargeting 800 residential units and 40

commercial units.

Price range: KShs. 2.5 million ($15,000) toKShs. 5 million ($58,000)

Additional Amenities:

Total project Cost: Project is at design stage

Stage: Closing December 2012 GroundBreaking

Portfolio Kisaju Plains

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20/23

Operating Company: Kenani HousingCompany Ltd.

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

Description: Mixed income community targeting2,400 residential units ( apartments and

Maisonettes) and 1,000 commercial units inPhase I.

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

Additional Amenities: Police, Clinic, Primary and

secondary schools,

Total project Cost: KShs. l 6 Billion

Stage: Financial closing projected in December2012. Ground breaking April 2013.

Portfolio Lukenya Valley

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21/23

Operating Company: Lukenya HousingCompany Ltd

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

Description: Mixed income communitytargeting 2,400 residential units ( apartmentsand Maisonettes) and Retail area.

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

Additional Amenities:

Total project Cost: Project is at design phase.

Stage: Financial closing projected in March2013. Ground breaking June 2013.

Portfolio Lukenya Housing Company

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22/23

Operating Company: Kisaju Mall ltd

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

Description: 20 Acres Commercial Complex including shoppingmall, Amusement Park, Hotel and office space.

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

established shortly.

Additional Amenities: Police, Clinic, Primary and secondaryschools,

Total project Cost: TBD

Stage: Financial closing projected in April 2013. Ground breakingJune 2013.

Portfolio Kisaju Shopping Mall

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Urbanis Africa Limited.5th Floor, Contrust House

Moi AvenueP.O. Box 57618-00200

NAIROBI

Tel:

Email: [email protected]

Web: www.urbanisafrica.com
mailto:[email protected]://www.urbanisafrica.com/http://www.urbanisafrica.com/mailto:[email protected]

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