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Urgently needed quality, yet affordable, housing for low and moderate income households

International Housing Solutions (IHS), an international joint venture between MuniMae of the US and top Irish property group Howard Eurocape, has launched its operations on the African continent for the first time, opening its head office for Africa in Rosebank, Johannesburg, in January.

With extensive experience financing affordable housing around the world, IHS aims to bring foreign capital and expertise to South Africa to boost the supply of urgently needed quality, yet affordable, housing for low and moderate income households.

It also favours taking a joint venture approach with local partners in the sector.

Chairman of IHS and Howard Eurocape, Frank Gormley, has a strong affinity for South Africa and has already committed billions to help rejuvenate the historical and cultural heart of Cape Town.

He has been particularly active in inner-city regeneration initiatives, and last year launched the St. Patrick’s Trust to provide seed capital and support for entrepreneurs and community initiatives in the townships. 

IHS has recruited a prominent housing expert to head their operations in South Africa. Elize Stroebel (Pictured right), who holds a legal degree as well as a Masters in Business Management, has joined the company from January 2007.

Previously, Ms Stroebel was the founder, CEO and Trustee of the Gauteng Partnership Fund (GPF), a R500 million fund focused on capital investments in social housing projects in Gauteng.

Under her direction the GPF managed to create sustainable partnerships with various financial institutions in the funding of projects for the lower- to middle-income sector of the market.

Elize Stroebel says: “IHS has conducted extensive research into the South African market. Figures from the SA Banking Association show a growing demand for housing which local financial institutions and developers are unable to meet, causing the current housing deficit to grow by about 180,000 units each year."

"Although the government has subsidized the construction of some 2.2 million homes in SA since 1994, a further 2.4 million homes are needed, an October 2006 report from the National Treasury revealed.

“Short-term finance has proved to be a major stumbling block in the construction of more of these houses. Initially, IHS aims to help finance homes for households earning between R3,500 and R8,200 per month. We will also be pursuing partnerships with local financial institutions to further expand our scope.”

According to IHS Managing Director Africa and UK Soula Proxenos, IHS will be drawing on capital from different sources worldwide to help make home ownership and formal rental more affordable.

“We believe in public-private partnership and our experience in the US and other markets is that government and the private sector can be much more effective in partnership than alone. We also believe in partnering with local and international financial institutions.

“We are in the process of establishing many of these relationships in South Africa. IHS will fund the development of both rental and for-sale affordable housing communities by organizing international debt and equity financing.

“IHS brings together two powerful parent companies with a wealth of experience in affordable housing finance and regeneration development,” she elaborates.

“Howard Eurocape has property holdings under management and development worth over €2.0 billion in Ireland, the UK, Europe and South Africa, including the well known Mandela Rhodes Place in downtown Cape Town.

“Added to this is MuniMae’s leadership position in affordable housing finance in the United States, where it is one of the largest sponsors of affordable housing investments."

"It has a portfolio of more than US$18 billion of assets under management. IHS will draw on this experience and that of Howard Eurocape to bring a lot of muscle to the affordable housing sector in South Africa.”

Proxenos is also extremely well qualified in the area of housing finance. She spent seven years working for Fannie Mae, the largest mortgage company in the US, where she specialised in devising sustainable low-cost housing solutions for more than 36 countries, including developing countries such as Turkey and Mexico.

About MuniMae

US-based MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects. 

The Company also provides investment management and advisory services for institutional investors.  Assets under management exceed $17 billion including investments in over 3,000 multifamily properties, containing more than 320,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

Through its affiliate, MMA Financial, Inc., the Company manages more than $7.5 billion of tax credit equity investments in affordable housing projects in the United States. 

In addition to syndicating tax credit equity investments, MMA Financial offers a broad range of debt financing products for developers of affordable housing projects.

About Howard Eurocape

Howard Eurocape Limited is a Dublin-based property investment and development company. It is one of the major development groups in Ireland and the UK.

Its associate in South Africa, Eurocape Investments Ltd, has expanded rapidly in the last few years to become a leading player in the South African market. 

Howard Eurocape offers a wide variety of secure prime investment and development opportunities to both the local and international markets.

They specialise in joint ventures, working in partnership with a wide range of national and international companies, local governments and individuals.

They also offer equity participation to South African and European investors, providing managed competitive returns on funds committed.