UrbanisAfrica corporate presentation

1. “A Vision for inclusive
housing in Africa”

2. Agenda
1. Low income housing Gap
2. Vision/Mission
3. Urbanis Solution
4. Business Model
5. Service Offering
6. Management Team
7. Operating Model
8. Portfolio/Track Record
2

3. Agenda
1 Low income housing Gap
2 Vision/Mission
3 Urbanis Solution
4 Business Model
5 Service Offering
6 Management Team
7 Operating Model
8 Portfolio/Track Record
3

4. Africa’s explosive demographic growth
• The African population is growing at a rate of
2.4% a year.
• It is estimated that by 2030, 50% of Africans will
live in cities;
• The African workforce will reach 1.1 billion
people by 2040 - the largest in the world
( McKinsey);
• And by 2050, Africa will be home to 1.9 Billion
people.
Africa’s workforce will become the world’s largest by 2040
Size of the working-age population (Million)
Africa
India
China
Latin America
South East Asia
Europe
North America
Japan
4

5. Africa’s explosive demographic growth
• The African population is growing at a rate of
2.4% a year.
• It is estimated that by 2030, 50% of Africans will
live in cities;
• The African workforce will reach 1.1 billion
people by 2040 - the largest in the world
( McKinsey);
• And by 2050, Africa will be home to 1.9 Billion
people.
Africa’s workforce will become the world’s largest by 2040
Size of the working-age population (Million)
Africa
India
China
Latin America
South East Asia
Europe
North America
Japan
5

6. Africa’s explosive demographic growth
• 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 Africa’s cities
(32 million households) live in informal housing
where basic services are poor or non-existent.
Africa is almost as urbanized as China and has as many cities of 1
million people as Europe
Share of rural vs. urban population by region, 2010 (%. Million)
100% = 1,219 1,032 1,351 830 594 349
Rural
Urban
Cities with >1
48 52 109 52 63 48
million people
SOURCE: United Nations; McKingsey Global Institute
6

7. Africa faces a large gap in low income housing
REGION DEMAND SUPPLY
• 32 million households in Sub-Saharan Africa are • 308 million people; 191 million of whom live in inadequate
Sub-Saharan considered inadequate. housing.
Africa • Under current urbanisation rates , an additional
14 million housing units per annum are required
• 60% of households are considered ‘inadequate’ • Less than 30,000 units supplied per year
Kenya housing and are located in slums. • The annual deficit is thus more than 120,000 housing units
• 150,000 units are required per year per year
• Ghana’s annual demand for housing currently • Current housing supply provides 42,000 units per annum
Ghana
stands at 120,000 housing units per annum which is only 35% of the demand
• 33.6 million Nigerians living in urban areas • The annual deficit is 16 million units
(46% of the urban population) are considered to • 720,000 units need to be created annually to meet the
Nigeria be living in inadequate housing demand
• Current supply is however meeting only 3% of this demand
• 80% of the entire population is living in • The housing deficit in urban areas is estimated at 1.2 million
Tanzania
unplanned, informal housing. units.
7

8. Africa faces a large gap in low income housing
REGION DEMAND SUPPLY
• 32 million households in Sub-Saharan Africa are • 308 million people; 191 million of whom live in inadequate
Sub-Saharan considered inadequate. housing.
Africa • Under current urbanisation rates , an additional
14 million housing units per annum are required
• 60% of households are considered ‘inadequate’ • Less than 30,000 units supplied per year
Kenya housing and are located in slums. • The annual deficit is thus more than 120,000 housing units
• 150,000 units are required per year per year
• Ghana’s annual demand for housing currently • Current housing supply provides 42,000 units per annum
Ghana
stands at 120,000 housing units per annum which is only 35% of the demand
• 33.6 million Nigerians living in urban areas • The annual deficit is 16 million units
(46% of the urban population) are considered to • 720,000 units need to be created annually to meet the
Nigeria be living in inadequate housing demand
• Current supply is however meeting only 3% of this demand
• 80% of the entire population is living in • The housing deficit in urban areas is estimated at 1.2 million
Tanzania
unplanned, informal housing. units.
8

9. Vision for African housing
The response to the African urban explosion must not be,
more unplanned and poorly serviced developments.
Africa should learn from the mistakes of many European
and American cites that allowed the development of social
enclaves, which became the source of insecurity, social
tension and frustration for the low income population.
The demand for housing should be met through the
development of suburban mixed income communities that
offer a healthy social environment, and economic
opportunities.
The vision of Urbanis Africa is to enable the ordinary
Africans, most of whom are active in the informal sector, to
acquire a house within their financial means and raise their
families in a safe, clean, healthy environment with access to
world class education and economic opportunities. In so
doing, Urbanis achieves social impact, environmental and
financial returns.
Urbanis aims to implement its model across the African
continent, and will encourage many developers to emulate
its model.
9

10. Vision for African housing
The response to the African urban explosion must not be, more
unplanned and poorly serviced developments.
Africa should learn from the mistakes of many European and
American cites that allowed the development of social enclaves,
which became the source of insecurity, social tension and
frustration for the low income population.
The demand for housing should be met through the
development of suburban mixed income communities that offer
a healthy social environment, and economic opportunities.
The vision of Urbanis Africa is to enable the ordinary Africans,
most of whom are active in the informal sector, to acquire a
house within their financial means and raise their families in a
safe, clean, healthy environment with access to world class
education and economic opportunities. In so doing, Urbanis
achieves social impact, environmental and financial returns.
Urbanis aims to implement its model across the African
continent, and will encourage many developers to emulate
its model.
10

11. Mission and Objectives
The mission of Urbanis Africa is to enable the
majority of Africans living in cities to have an
opportunity to own a house, work and raise a
family, in a clean and family-friendly
environment.
The Company’s objectives are as follows:
•Develop planned mixed income communities across the
continent that implement state of the art, low carbon
footprint technology
•Provide a ‘one-stop shop’ approach to delivering
housing solutions, by building partnerships with all the
players in the value chain, including the commercial
banks.
•Design inclusive solutions to unlock mortgage financing
for informal sector borrowers and;
•Deliver affordable housing within a profitable business
model.
11

12. Urbanis Solution
Urbanis Africa contributes to resolving the
problem of affordable housing in Africa using the
following tools;
•Cross subsidization: Achieve affordability through
mixed income housing communities, and apply cross
subsidization between middle and low income housing
units.
•Collaboration: Create a network of partners around
each project including designers, contractors, bankers,
financiers etc.
•Rapid construction: Accelerate the speed of
construction through the use of pre-cast concrete.
•Low cost of ownership: Reduce recurring cost to
owner by using green technology ( Waste recycling,
Solar energy, rain water storage etc..)
•Building at the periphery: Urbanis achieves
affordability by building integrated housing
communities with Residential, Economic and Social
amenities at the periphery of large urban centers.
12

13. Achieving Socio Economic Value
Urbanis Africa aims to maximize socio economic value ….
Financial Return Risk Management Socio Economic Value
• Average project IRR of 25% • Create local Employment • Economic Benefit for
• Minimum Project profit • Provide low income housing Investors.
margin of 20%. • Create Economic • Economic Benefits for
• Average payback period, opportunities home buyers
4 years. • Provide better education (affordability)
• Economic Benefits for the
Social Return Environmental Returns
community
• Create local Employment • Solar Powered public areas
• Social Benefit for the
• Provide low income housing • Recycled waste water
residents
• Create Economic • Rain water capture
opportunities
• Social Benefits for the
• Recycled Solid Waste
• Provide better education
community
• 40% of property reserved
for green spaces.
Socio Economic Value Proposition
13

14. Business Model
Urbanis’ Africa is a real estate developer specialized in bottom-
of-the-pyramid residential and commercial projects.
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 exposed exclusively to
a single project.
As a developer, Urbanis takes an equity participation in its
projects. It is remunerated through developer's fees and
sweat equity.
Architectural
Design
Construction Financial
Technology Structuring
Operational Project
Management Management
Equity Supply Chain
Investment Management
14

15. Business Model
Urbanis’ Africa is a real estate developer specialized in bottom-
of-the-pyramid residential and commercial projects.
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 exposed exclusively to
a single project.
As a developer, Urbanis takes an equity participation in its
projects. It is remunerated through developer's fees and
sweat equity.
Architectural
Design
Construction Financial
Technology Structuring
Operational Project
Management Management
Equity Supply Chain
Investment Management
15

16. Business Model
• Urbanis’ Africa is a real estate developer specialized in
bottom-of-the-pyramid residential and commercial projects.
• 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 exposed exclusively
to a single project.
• As a developer, Urbanis takes an equity participation in its
projects. It is remunerated through developer's fees and
sweat equity.
16

17. Business Model (continue)…
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)
Mortgage
Banks
SPV
Government MFI’s
(Country Specific)
Local Investor Contractor Home Buyer
17

18. Business Model (continue)…
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)
Mortgage
URBANIS
Banks
SPV
Government MFI’s
(Country Specific)
Local Investor Contractor Home Buyer
18

19. Service Offering
• Urbanis’ Africa Provides services that span across the entire
development value chain.
• The company manages projects from inception to post
completion management.
• Urbanis Africa provides the management services through
subsidiaries that it establishes in countries where the
projects are located.
19

20. Service Offering
• Urbanis’ Africa Provides services that span across the entire
development value chain.
• The company manages projects from inception to post
completion management.
• Urbanis Africa provides the management services through
subsidiaries that it establishes in countries where the
projects are located.
PROJECT
ORIGINATION
PROPERTY FEASIBILITY
MANAGEMENT STUDY
PROJECT MASTER
MANAGEMENT PLANNING
PROJECT ARCHITECTURAL
FUNDING & TECHNICAL
DESIGN
FINANCIAL
STRTUCTURING
20

21. Integrated Service Offering
Urbanis provides and integrated suite of services that enables the
company to manage bottom-of-the-pyramid residential and commercial
projects from inception to post delivery across Africa.
Real Estate Property
Financial Structuring Construction
Development Management
• Project Conceptual • Project Financial • Rapid construction • Estate Management
Design feasibility based on precast • Commercial Assets
• Architectural and • Financial Modeling concrete and form Management
technical design work.
• Financial restructuring • Utility and Waster
• Project development • Sourcing of Equity and Management
• Project Execution and Debt funding • Community Projects
Management • Financial Management
• Sales and Marketing of projects
21

22. Financial Solution Point
The process of buying a home in
riddled with complexity and
insurmountable obstacles.
Urbanis Africa has launched a service
that enables the clients to receive
advise on the financing their home
and obtain hands on assistance in the
mortgage application process.
Urbanis offers a one stop shop
solution for acquiring an affordable
home in Africa.
22

23. Ur-Homes interactive Platform
Urbanis Africa has launched a powerful marketing channel – Ur-Homes.com
The interactive Web Platform enables African seeking to acquire an affordable home from
Urbanis Africa to select, purchase and finance the home online.
Ur-Homes.com also includes general information about the real estate market in Africa and
about financing options available to Africans.
23

24. Ur-Homes interactive Platform
• Urbanis Africa has launched a powerful marketing channel –
Ur-Homes.com
• The interactive Web Platform enables African seeking to acquire an
affordable home from Urbanis Africa to select, purchase and finance
the home online.
• Ur-Homes.com also includes general information about the real estate
market in Africa and about financing options available to Africans.
24

25. Competent Management Team (1/3)
• 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)
WAGANE DIOUF • Executive MBA from the Georgia Institute of Technology
CEO
• 30 Years experience in project finance, large scale project management, real estate
and manufacturing.
• MBA from University of Nairobi, Bachelor of from Newcastle University, UK
JAKOYO PATRICK AIRO
Chief Operating Officer
Kenani
• 20 years experience in all aspects of property management, construction and
valuation.
• B.A. Land Economics (Hons) degree from University of Nairobi
FRANCIS OTIENO
Chief Operations Officer
25

26. Competent Management Team (2/3)
• 12 years experience in construction industry
– procurement coordination of contractors
– site log preparation
– tracking construction project expenditures
– cost value reconciliation
BEATRICE WANJIKU
Chief Procurement • Holds a Degree in Civil Engineering from Kenya Polytechnic.
Officer
CLAIRE ANAMI
Construction Manager –
• Communications expert with 9 years experience in CSR.
• Key achievements:
– Launched Ministry of Health’s malaria prevention campaign at 85% awareness
– Development and implementation of Kenya Constitution Committee of Experts’
nationwide campaign “Jisomee, Jiamulie, Jichagulie, at 90% awareness
JESSICA RUTTO – Planning and implementing G-Pange HIV Initiative by AMREF.
Corporate Social
Responsibilities Manager • Bachelor of Arts in Communication from Daystar University
26

27. Competent Management Team (3/3)
• Responsible for group accounting and Finance
• 27 years practical experience in senior level Management in Accounting and Financial
Administration
• Certified Public Accountant of Kenya (CPAK) and holds a B.Comm degree in Accounting
JACOB ORIOKI
from the University of Nairobi.
Chief Financial Officer
• Responsible for group sales and marketing
• 10 years experience in residential and commercial real estate in Kenya.
• Post Graduate degree in Real Estate Agency and Property Management,
University of Nairobi
CATHERINE WAREGA
Chief Marketing officer
• Financial analysis & structuring • Group Corporate Legal Officer
• Progressive experience in financial
• Advocate of the High Court
analysis & structuring
• Extensive litigation and
• University of Southern California
with Masters degrees in Economics Corporate law practice in the
JEREMY CHILDRESS and Corporate Finance FRANCISCA WANBUA
field of conveyancy
Financial Analyst Corporate Lawyer
27

28. Governance/Ownership Structure
Executive Urbanis Sweden
Management (Stockholm)
Equity Equity
Urbanis Africa
(Nairobi)
Equity + Management contract Equity +
Management Contract Management Contract
Kenani Housing Co. Jamii Bora Makao
SPV SPV
(SPV) (SPV)
28

29. Portfolio – Kisaju View Park I
• Operating Company: Jamii Bora Makao.
• Location: Kaputiei within Kisaju Town off
Namanga Road, 60 Kms from Nairobi CBD.
• Description: Mixed income community
targeting 2,000 residential units and
2,000 and 1,164 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.
29

30. Portfolio – Kisaju View Park II
• Operating Company: Kisaju View Park
Limited
• Location: Located on the Pipeline Road near
the Isigna junction. 50 Kms from Nairobi
CBD.
• Description: Mixed income community
targeting 1,000 residential units and 200
commercial units.
• Price range: KShs. 1.5 million ($15,000) to
KShs. 5 million ($58,000)
• Additional Amenities:
• Total project Cost: Project is at design stage
• Stage: Closing December 2012 – Ground
Breaking
30

31. 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. 1.6 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 December
2012. Ground breaking April 2013.
31

32. Portfolio – Lukenya Housing Company
• Operating Company: Lukenya Housing
Company Ltd
• Location: Lukenya, near Athi River, located 37
kilometers south east of Nairobi CBD, on a 100
acres plot of land.
• Description: Mixed income community
targeting 2,400 residential units ( apartments
and Maisonettes) and Retail area.
• Price range: KShs. 1.6 million ($16,000) to
KShs. 6.0 million ($82,000)
• Additional Amenities:
• Total project Cost: Project is at design phase.
• Stage: Financial closing projected in March
2013. Ground breaking June 2013.
32

33. Portfolio – Kisaju Shopping Mall
• Operating Company: Kisaju Mall ltd
• Location: Kisaju (10k from Kitengela) on the Namaga Road.
• Description: 20 Acres Commercial Complex including shopping
mall, Amusement Park, Hotel and office space.
• Price range: The project is at design stage. Prices will be
established shortly.
• Additional Amenities: Police, Clinic, Primary and secondary
schools,
• Total project Cost: TBD
• Stage: Financial closing projected in April 2013. Ground breaking
June 2013.
33

34. Urbanis Africa Limited.
5th Floor, Contrust House
Moi Avenue
P.O. Box 57618-00200
NAIROBI
Tel:
Email: info@urbanisafrica.com
Web: www.urbanisafrica.com