Housing in Southern Africa July 2015

News

Adler leaves HDA Taffy Adler, one of the most seasoned CEOs in the housing sector has left theHousing Development Agency.

T he former CEO is a housing activist who has won a number of international awards for his work in the social housing sector. As head of government’s land acquiring agency for the Depart- ment of Human Settlements and under his leadership, the agency has successfully delivered far above its acquisition targets and he will be sorely missed. Minister of Human Settlements, Lindiwe Sisulu says, “He will fortu- nately still be part of the housing environment and we will count on his support when he has time for us. Through his energy, focus, experi- ence and ability to adapt to new challenges, Taffy has shaped the HDA

into a highly effective and efficient organisation, which is an essential part of the state’s human settlements efforts. As we bid farewell to Taffy, we do so knowing that he has played a pivotal role, not only in shaping and leading the HDA since its forma- tion, but in broader areas such as the turnaround of the N2 Gateway, the informal settlements upgrade programme and the development of the Master Spatial Plan.” Adler has had a direct and indi- rect impact across the entire human settlements value chain and, says Sisulu, “We are sure this will continue to be the case in his new role. We are very grateful for all he has done I nternational Housing Solutions has an impressive track record in the rental and affordable housing market in South Africawith its second fund successfully raising capital of US$180 million to date. The global equity fund has begun approving investment opportunities in South Africa. The first investment that has been approved is Ravenswood, a 188 unit rental development in Johan- nesburg. According to international Managing Partner, Soula Proxenos of International Housing Solutions, the development will bemanaged by the company for a period of four years. The planned exit strategy is to release on their skills and capacity rather than price. This comes as the depart- ment aims to build 1,5million houses and housing opportunities to accom- modate a growing housing backlog. The Minister said her department was exploring partnerships to en- sure that this target is met. She said that while government will strive to deliver quality houses - citizens also have a role to play to ensure that the

during his time with us and we wish him well.” Taking over as Acting CEO is the Department of Human Settlements Director General, Thabane Zulu, who is very familiar with the work of the agency and what it is expected to deliver in the current MTSF period. He will bring stability and continu- ity during this bridging phase while the new CEO appointment is being finalised. ■ a limited number of units for sale over a 31 month period. A number of alternative exits may all present, such as the sale of a stabilisedmulti- family project, or to an institutional buyer or a REIT. One of the equity provider’s first fund’s projects was The Mews, a 466 unit middle income development in Durban, KwaZulu-Natal. Proxenos says that the sale of the final 24 units is expected to be complete by August 2015. This project is expected to provide a return of 27% IRR, on In- ternational Housing Solutions R77,3 million (approximately US$7 million at the time of investment). The in- vestment was closed inMarch 2012. ■ sponsibility to fix a broken window or door latch when it is broken. We are embarking on a nationwide consumer education to empower our people to understand the value of the houses they own, the importance of caring for it andmost importantly, why they must not easily sell it to address short term challenges. This will be done in partnership with the Estate Affairs Agency Board.” ■ houses they stay in do not fall apart. “A beneficiary of a house has a re-

IHS US$ 180 million

Soula Proxenos

DOHS reviews tender system

T he Department of Human Settlements (DOHS) Minister, Lindiwe Sisulu says her depart- ment will review its tender system to make it work better. TheMinister said that it was necessary for her depart- ment to review the tender systems adding that “It is one of our biggest headaches in the Human Settlements environment.” The review will focus on pre-qualifying contractors based

July 2015