Agenda 1. ow income housing Gap L 2. ision / Mission V 3. rbanis solution U 4. usiness Model B 5. ervice Offering S 6. anagement Team M 7. perating Model O 8. ortfolio / Track Record P
Africa’s explosive demographic growth Africa’s workforce will become the world’s largest by 2040 Size of the working‐age populaGon The African population is growing Million 1,200 at a rate of 2.4% a year. Africa 1,000 India It is estimated that by 2030, 50% of Africans will live in cities; 800 China The African workforce will reach 600 Southeast Asia 1.1 billion people by 2040 ‐ the La:n America largest in the world ( McKinsey); 400 Europe 200 And by 2050, Africa will be home to North America 1.9 Billion people. 0 Japan 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
Africa’s is facing an urban challenge 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 A f r i c a’ s c i t i e s ( 3 2 m i l l i o n households) live in informal housing where basic services are poor or non‐existent.
Africa faces a large gap in low income housing Region Demand Supply Sub‐ Saharan 32 million households in Sub‐Saharan Africa are 308 million people; 191 million of whom live in Africa considered inadequate. inadequate housing. Under current urbanisa:on rates , an addi:onal 14 million housing units per annum are required Kenya 60% of households are considered ‘inadequate’ housing Less than 30,000 units supplied per year and are located in slums. The annual deﬁcit is thus more than 120,000 150,000 units are required per year housing units per year Ghana Ghana’s annual demand for housing currently stands at Current housing supply provides 42,000 units 120,000 housing units per annum per annum which is only 35% of the demand Nigeria 33.6 million Nigerians living in urban areas (46% of the The annual deﬁcit is 16 million units urban popula:on) are considered to be living in 720,000 units need to be created annually to inadequate housing meet the demand Current supply is however mee:ng only 3% of this demand Tanzania 80% of the en:re popula:on is living in unplanned, The housing deﬁcit in urban areas is es:mated informal housing. at 1.2 million units.
Vision for African housingThe response to the African urban explosion The vision of Urbanis Africa is to enable the must not be, more unplanned and poorly ordinary Africans, most of whom are active serviced developments. in the informal sector, to acquire a house Africa should learn from the mistakes of within their Tinancial means and raise their many European and American cites that f a m i l i e s i n a s a f e , c l e a n , h e a l t h y allowed the development of social enclaves, environment with access to world class which became the source of insecurity, education and economic opportunities. In so social tension and frustration for the low doing, Urbanis achieves social impact, income population. environmental and Tinancial returns. The demand for housing should be met through the development of suburban Urbanis aims to implement its model across mixed income communities that offer a the African continent, and will encourage healthy social environment, and economic many developers to emulate its model. opportunities.
Mission and Objectives Provide a ‘one‐stop shop’ approach to The mission of Urbanis Africa is to enable delivering housing solutions, by building the majority of Africans living in cities to partnerships with all the players in the have an opportunity to own a house, work value chain, including the commercial and raise a family, in a clean and family‐ banks. friendly environment. Design inclusive solutions to unlock mortgage Tinancing for informal sector The Company’s objectives are as follows: borrowers and; Deliver affordable housing within a e v e l o p p l a n n e d m i x e d i n c o m e D proTitable business model. communities across the continent that implement state of the art, low carbon footprint technology
Urbanis Solution Rapid construction: Accelerate the Urbanis Africa contributes to resolving speed of construction through the the problem of affordable housing in use of pre‐cast concrete. Africa using the following tools; Low cost of ownership: Reduce recurring cost to owner by using r o s s s u b s i d i z a t i o n : A c h i e v e C green technology ( Waste recycling, affordability through mixed income Solar energy, rain water storage etc..) housing communities, and apply cross Building at the periphery: Urbanis subsidization between middle and low achieves affordability by building income housing units. integrated housing communities ollaboration: Create a network of C with Residential, Economic and partners around each project including Social amenities at the periphery of designers, contractors, bankers, Tinanciers large urban centers. etc
Achieving Socio Economic Value Urbanis Africa aims to maximize socio economic value …. Financial Return Risk Management Socio Economic Value Create local Employment Average project IRR of 25% rovide low income housing P • Economic Beneﬁt for inimum Project proﬁt M reate Economic C Investors. margin of 20%. opportuni:es • Economic Beneﬁts for verage payback period, 4 A rovide becer educa:on P home buyers years. ( aﬀordability) • Economic Beneﬁts for Environmental Returns the community Social Return • Social Beneﬁt for the Create local Employment Solar Powered public areas rovide low income housing P ecycled waste water R residents reate Economic C ain water capture R • Social Beneﬁts for the opportuni:es ecycled Solid Waste R community rovide becer educa:on P 0% of property reserved for 4 green spaces. Socio Economic Value Proposi:on
Business Model Urbanis’ Africa is a real estate developer Architectural specialized in bottom‐of‐the‐pyramid Design residential and commercial projects. Construc:on Financial Technology Structuring 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 Urbanis exposed exclusively to a single project. Opera:onal Africa Project Management Management As a developer, Urbanis takes an equity participation in its projects. It is remunerated through developers fees Equity Supply Chain and sweat equity. Investment Management
Business Model ( cont)_ The company builds alliances and partnerships across the value chain, hence creating a microcosm that addresses the housing problem holistically. Quasi – Equity Financiers Equity Investor Investors (Debt) URBANIS Mortgage Banks SPV (Country Government MFI’s Speci]ic) Local Investor Contractor Home Buyer
Service Offering PROJECT Urbanis’ Africa Provides services that ORIGINATION span across the entire development PROPERTY FEASIBILITY value chain. MANAGEMENT STUDY The company manages projects from inception to post completion management. PROJECT MANAGEMENT MASTER PLANNING Urbanis Africa provides the management services through subsidiaries that it establishes in PROJECT ARCHITECTURA L & TECHNICAL countries where the projects are located. FUNDING DESIGN FINANCIAL STRTUCTURING
Integrated Service Offering Urbanis provides and integrated suite of services that enables the company to manage bottom‐of‐ the‐pyramid residential and commercial project from inception to post delivery across Africa. Urbanis Africa Development Financial Advisory Construc:on Property Management Management Project Conceptual Project Financial Rapid construc:on Estate Management Design feasibility based on precast Commercial Assets Architectural and Financial Modeling concrete and form Management technical design work. Financial restructuring U:lity and Waster Project development Sourcing of Equity and Management Project Execu:on and Debt funding Community Projects Management Financial Management of projects
Competent Management Team Wagane Diouf ,Chief Executive Of]icer: • Founder and CEO of Urbanis Africa • 12 Years experience in Impact Investing and Private Equity • Bachelor in Computer Science from ESGI (Paris) • Bachelor in Finance from ESG (Paris) • Executive MBA from the Georgia Institute of Technology Jakoyo Patrick Airo , Chief Operating Of]icer: Francis Otieno, Head of Property Management • Chief Operating OfTicer of Urbanis Africa • Property Manager • 30 Years experience in project Tinance, large scale • 20 years experience in all aspects of property project management, real estate and manufacturing. management and valuation. • MBA from University of Nairobi,Bachelor of from • B.A. Land Economics (Hons) degree from University of Newcastle University, UK Nairobi Jacob Orioki , Chief Accountant Catherine Warega, Head of Sales and Marketing • Responsible for group accounting and Finance • Responsible for group sales and marketing • 27 years practical experience in senior level • 10 years experience in residential and commercial real Management in Accounting and Financial Administration estate in Kenya. • CertiTied Public Accountant of Kenya (CPAK) and holds a • Post Graduate degree in Real Estate Agency and B.Comm degree in Accounting from the University of Property Management, University of Nairobi Nairobi. Jeremy Childress , Financial Analyst Francisca Wanbua, Corporate Lawyer • Tinancial analysis & structuring • Group Corporate Legal OfTicer • progressive experience in Tinancial analysis & • Advocate of the High Court structuring • Extensive litigation and Corporate law practice in the • University of Southern California with degrees in Tield of conveyancy Economics and Corporate Finance
Governance/Ownership Structure Execu:ve Urbanis Sweden Management (Stockholm) Equity Equity Urbanis Africa (Nairobi) Equity + Management contract Equity Equity Management Contract Kenani Housing Co. Jamii Bora Makao Urbanis Building Urbanis Clean Energy (SPV) (SPV) Technology Solu:ons
Portfolio Jamii Bora Makao Operating Company: Jamii Bora Makao. Location: Kaputiei within Kisaju Town off Namanga Road, 60 Kms from Nairobi CBD. Description: Mixed income community targeting 2000 residential units and 2000 and 1164 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.
Portfolio – Kenani Housing Company 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. 1.4 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 April 2011. Ground breaking June 2011.
Urbanis Africa Limited. 5th Floor, Contrust House Moi Avenue P.O. Box 57618‐00200 NAIROBI Tel: Email: firstname.lastname@example.org www.urbanisafrica.com