Gauteng Property Fund (GPF) host Funding Serminar

Ceremony and Founder of

Panel discussion, titled,

In opening,the Deputy Chairperson of the GPF Board of Trustees, Mr. Sello Dada

Morero said “It is my pleasure and indeed, an honour for me to welcome you to the Gauteng Partnership Fund’s first Funding Seminar. We have been inundated with emails and calls, particularly over this past week, from people looking to attend this event – and for that, we are both encouraged and grateful for your interest”

The Chief Executive Officer of the Gauteng Partnership Fund (GPF),

Lindiwe Kwele has called on the private sector to join forces with entities such as the one she leads, in order to address the housing shortage in the province. With hundreds of thousands of people flocking into Gauteng annually, the housing backlog is estimated to be around 1.2 million. Demand for housing continues to outstrip government budgets.

At its inaugural GPF Funding Seminar, which included key stakeholders in the affordable housing sector, Kwele told attendees: “Our clean financial audit reports over the past 13 consecutive financial years are indicative of an organisation with sound financial management and governance processes. This favourable audit status continues to build strong investor confidence.”

She added that “maintaining a positive reputation is essential to the attraction of new investors and sustaining our existing investor partnerships”.

Kwele said that the Gauteng Partnership, which is an agency of the Gauteng Department of Human Settlements, responsible for leveraging various resources in collaboration with the private and public sectors to accelerate the delivery of affordable rental housing, had leveraged about R3 billion from the private and public sector since its establishment.

The seminar, which was attended by over 270 people - both physically and virtually -, featured several panelists including the newly appointed National Housing Finance Corporation’s CEO Azola Mayekiso;

The panel, consisting mainly of government-sponsored institutions, noted the opportunity for its combined resources to be augmented by the R9 trillion assets under management in the retirement fund sector. National Treasury recently amended Regulation 28 of Pensions’ Fund Act, 1956 which provides investment limits per asset class. The massive increase to 45% in the allocation to infrastructure, which includes social infrastructure of which affordable housing is a subset, provides an opportunity for pension funds to get exposure to this asset class through partnerships with institutions such as GPF.

Zama Khanyile, the Divisional Executive: Venture Capital & Corporate Finance at the National Empowerment Fund; Lusanda Netshitenzhe, the CEO of TUHF21; Lizanne Hennop, the manager of the Property Development Service Unit at Urban-Econ; Wits University senior lecturer, Dr. Prisca Kasanhayi-Simbanegavi; Mandy Jayakody, the director at Aquila Projects, and the GPF’s Acting Chief Investment and Development Officer, Shiraaz Lorgat.

Several property developers whose projects were funded by the GPF gave testimonials, while others took the opportunity to ask for advice on how to access funding for their projects.

The Deputy Director General for Planning & Property Management at the Gauteng Department of Human Settlements, Daniel Molokomme added: “The GPF also plays a critical role in the provision of units for student accommodation, as well as social housing. On the critical issue of student accommodation, we are working closely with institutions of higher learning in order to provide a sustainable solution to this societal challenge.”

Kwele said the GPF is the preferred partner to government, property developers, as well as co-funding partners, thanks to its long track record of promoting economic empowerment by offering preferential rates to BBBEE accredited developers, a variety of attractive products, as well as the job creation, and local economic development spin-offs stimulated by its funded projects.

“The Intuthuko Equity Fund started 19 years ago in 2004, and it was supported by the GPF as the first funder for about R20 million. Ms Kwele, you will be very happy to know that your

“Not many people have the opportunity to stand at the cusp of an organisation where you are entrusted with a legacy that has been built over the last 20 years – but also having the responsibility to pave a sustainable way forward. Ms Kwele, this is very much where you find yourself - driving an organisation that has been, and potentially could be, part of changing the circumstances of many South Africans, but also being a game-changer in role as a DFI who catalyses these spaces means that Intuthuko today is not only a Gauteng product but a national product. Intuthuko has managed to bring in and leverage private sector investment – we have over R135 million that has been invested into Intuthuko to support PDIs because of your initial vision to support it. So, today we want to say thank you to the GPF… we have been fellow travellers for a while.”

“With respect to our partnership with the GPF, we really look forward to the collaboration that we will be going into together – in terms of co-investing for student accommodation and affordable housing.” the sector and setting an example for similar organisations across the country... I would like to wish you all at the GPF the very best in strengthening the Gauteng Partnership Fund.”