A Social REIT for Africa: Kigali

1. (c) Darin Gunesekera 2017
(c) Darin Gunesekera 2017
1
“Serious People have
built
SLUMS on Gold”
Join RRX, the Rwanda Realestate
Exchange, to Bring the Capital
Market HOME to these People
Dr DARIN GUNESEKERA (Yale Graduate)
Capital Markets for the Marginalized (CMM)

2. 2
Logical Basis : the Land Cycle Process 1
Slums are wasteful of Land. The Ground Cover or Land Use of
a Household Unit averages about 750 sq ft Kigali, Rwanda,
(Compare with 650 sq ft in Colombo, Sri Lanka);
While in the same locations
an Urban Luxury unit averages only 110 sq ft, Ground Cover.
This simple fact means that using standard tried and tested
technologies, and existing methods of management, we can
finance modern decent re-housing for slum dwellers through
the sale of slum blocks of urban land. The need is now for the
skills of a Financier/Realtor to transform the slum land to
upmarket or commercial land. Social Residents can be paid
with modern decent homes of their own.
SUCCESS, as in all Business, will depend on
Customer ATTRACTION. That is the Base.
© Darin Gunesekera 2017

3. (c) CMM 2006
3
Logical Basis: the Land Cycle Process 2
First vacant acquired
land (Trust 1) 1
Occupied Estates:
(Trust 2, 3 of Cycle 2)
2 3
Occupied Estates:
(Trust 4..7 of Cycle 3)
4 5 6 7
Land Cycle 1
Land Cycle 2
Land Cycle 3
– project exchanges new units for vacant possession of old
units © Darin Gunesekera 2017
When a vacant land is used to Rehouse Slum dwellers, at least a couple of
estates of equal size can be accommodated on that Land. This enables a larger
new cycle. It is exponential growth.

4. 4
Data and Photographs are from : The pioneer project by Dr
Darin called the Real Estate Exchange Limited or REEL in the
heart of Inner City Colombo, Sri Lanka
He was awarded a Certificate from UNHABITAT as one of
the best five Affordable Housing Practices in the World.
In 2016, Dr Darin did a World Bank/IFC study for the
Rwandan Government. Its conclusions are included in the
National Policy Statement of February 2017. The Rwanda
Realestate Exchange or RRX arises from this.
© Darin Gunesekera 2017
Photos & Terminology in Following SLIDES

5. (c) Darin Gunesekera 2017
“THIS SLUM DWELLER IS MY CUSTOMER”
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I DO NOT tell her ‘politics’, that:
She is living Unhygienically
She is Bad for the City
She does not spend wisely
She is a Burden
She has an unsocial family
■ I ATTRACT her to buy into
our scheme
■ So she BUYS her new home
(with her assets)
■ And she has RIGHTS as a
buyer
■ And she is in a Community
of Buyer/ END-USERS
She is a normal customer,
just as any other real estate
customer, profiled at a low
income level.

6. (c) Darin Gunesekera 2017
The Real Estate Exchange
“New Lamps for Old”
Th Real Estate Exchange is a Trading Company
(In Rwanda - RRX. In Sri Lanka - REEL.)
It has Slum customers bringing in the land they own or occupy as
sellers offering vacant possession to REEL/RRX
And business customer buyers who are Development REITs or
Social REITs who buy the land so liberated from REEL/RRX.
RRX or REEL ensures that Deals ON OFFER can be Trusted.
1. Sellers Give their house (vacant possession) and
2. REEL/RRX Gives them a modern decent House plus shares in
the development as maybe negotiated.
3. REEL/RRX sells the liberated land to business buyers (REITs).
6

7. 7
REEL
The People’s Stock Exchange
© Darin Gunesekera 2017
Slum dwellers come in their “Sunday Best” to the Trading Floor of
the Exchange. The Counter clerks have the household and house
details including photos, measurements in their computers under
the counter. Principle: Give value, Get value in proportion

8. 8
© Darin Gunesekera 2017

9. Our Selling Customers Traded
This
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© Darin Gunesekera 2017
Inner City
Colombo
Sri Lanka
-wet climate
Sunny outside
Dark inside

10. (c) Darin Gunesekera 2017
For THIS - Attractive !!
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11. THE Real Estate Exchange/REEL TRADED THE OBVERSE
Real Estate Exchange /REEL
Investment: SLRs600M (USD6M)
Outside Community Sales (Gross Cash Return): SLRs1700M (USD17M)
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© Darin Gunesekera 2017

12. (c) CMM 2006
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In Corporate Terms
■ For REELShare Holders
■ Total Investment Expenses = USD6M (SLRs600M)
■ Total Sales Income (Sales Outside Community) = USD17M
(SLRs1700M)
■ Financial Return = 183.4% (No Tax applied)
■ For Neighborhood (End User Owners & real estate investors)
■ Regeneration of Neighborhood as
■ Lives transformed from Shanty to Middle Class
■ Safe, Hygienic, Clean, paid utilities neighborhood
■ All Children go to School
■ This Gain is partly Social and partly Privatized in the
increase of Land Values

13. 13
People’s Lifestyle
Results
■ BEFORE AFTER
■ Social Transformation
■ Wealth (Land Value) Gain
© Darin Gunesekera 2017

14. ■ video
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The Past and Present seen by independent video
production of REEL housing.(6 years later; long after
project period; 5 years after full Condo hand over).
© Darin Gunesekera 2017
Contact:
Socialreit@gmail.com