A Vision for inclusive housing in Africa

Agenda
1 Low income housing Gap 2 Vision/Mission 3 Urbanis Solution 4 Business Model

5 Jamii Bora Makao

6 Development Planning 7 Financing 8 Property Management

Africas explosive demographic growth

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.
Africas workforce will become the worlds largest by 2040
Size of the working-age population (Million)
1,200 1,000 800 600 400 200 0 Africa India China Latin America South East Asia Europe North America Japan 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 3

Africas explosive demographic growth

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 Africas cities (32 million households) live in informal housing where basic services are poor or non-existent.
Africa is almost as urbanized as China and has as many cities of 1 million people as Europe
Share of rural vs. urban population by region, 2010 (%. Million)
100% = Rural Urban 1,219 70 30 India
Cities with >1 million people

1,032 60 40 Africa 52

1,351 55 45 China 109

830 27 73 Europe 52

594 21 79

349 18 82

48

Latin America 63

North America 48

SOURCE: United Nations; McKingsey Global Institute 4

Africa faces a large gap in low income housing

REGION
Sub-Saharan Africa

DEMAND

SUPPLY

32 million households in Sub-Saharan Africa are 308 million people; 191 million of whom live in inadequate considered inadequate. housing. Under current urbanisation rates , an additional 14 million housing units per annum are required

Kenya Ghana

60% of households are considered inadequate housing and are located in slums. 150,000 units are required per year
Ghanas annual demand for housing currently stands at 120,000 housing units per annum

Less than 30,000 units supplied per year The annual deficit is thus more than 120,000 housing units per year
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 The annual deficit is 16 million units (46% of the urban population) are considered to 720,000 units need to be created annually to meet the demand be living in inadequate housing Current supply is however meeting only 3% of this demand 80% of the entire population is living in unplanned, informal housing. The housing deficit in urban areas is estimated at 1.2 million units.

Tanzania

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 Companys 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.

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 .
Financial Return
Average project IRR of 25%
Minimum Project profit margin of 20%. Average payback period, 4 years.

Risk Management
Create local Employment
Provide low income housing Create Economic opportunities Provide better education

Socio Economic Value

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

Social Return
Create local Employment Provide low income housing Create Economic opportunities Provide better education

Environmental Returns
Solar Powered public areas Recycled waste water Rain water capture Recycled Solid Waste 40% of property reserved for green spaces.

Socio Economic Value Proposition

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Business Model
Urbanis Africa is a real estate developer specialized in bottomof-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.
Architectural Design Construction Technology Financial Structuring

Operational Management Equity Investment Supply Chain Management

Project Management

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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 Investor Quasi Equity Investors Financiers (Debt)
Mortgage Banks Government SPV (Country Specific) Contractor MFIs

Local Investor

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 Investor Quasi Equity Investors
URBANIS SPV (Country Specific) Contractor

Financiers (Debt)
Mortgage Banks MFIs

Government

Local Investor

Home Buyer

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Service Offering
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.
PROJECT ORIGINATION PROPERTY MANAGEMENT FEASIBILITY STUDY

PROJECT MANAGEMENT

MASTER PLANNING

PROJECT FUNDING FINANCIAL STRTUCTURING

ARCHITECTURAL & TECHNICAL DESIGN

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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

Project Conceptual Design Architectural and technical design Project development Project Execution and Management Sales and Marketing

Financial Structuring
Project Financial feasibility Financial Modeling Financial restructuring Sourcing of Equity and Debt funding Financial Management of projects

Construction
Rapid construction based on precast concrete and form work.

Property Management
Estate Management Commercial Assets Management Utility and Waster Management Community Projects

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Financial Solution Point

The process of buying a home in riddled with complexity and insurmountable obstacles. 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. Urbanis offers a one stop shop solution for acquiring an affordable home in Africa.
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Ur-Homes interactive Platform

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.

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Governance/Ownership Structure
Executive Management
Equity

Urbanis Sweden (Stockholm)

Equity

Urbanis Africa (Nairobi)

Equity + Management Contract Management contract Equity + Management Contract

Kenani Housing Co. (SPV)

Jamii Bora Makao (SPV)

SPV

SPV

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Portfolio Kisaju View Park I

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.
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Portfolio Kisaju Plains

Operating Company: Kisaju Plains Limited Location: Located on the Pipeline Road near the Isigna junction. 50 Kms from Nairobi CBD. Description: Mixed income community targeting 800 residential units and 40 commercial units.

Price range: KShs. 2.5 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

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Portfolio Lukenya Valley

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) Additional Amenities: Police, Clinic, Primary and secondary schools, Total project Cost: KShs. l 6 Billion Stage: Financial closing projected in December 2012. Ground breaking April 2013.
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Portfolio Lukenya Housing Company

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.

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Portfolio Kisaju Shopping Mall

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. Additional Amenities: Police, Clinic, Primary and secondary schools, Total project Cost: TBD

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

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Urbanis Africa Limited.

5th Floor, Contrust House Moi Avenue P.O. Box 57618-00200 NAIROBI
Tel: Email: info@urbanisafrica.com Web: www.urbanisafrica.com