TUHF, a financier that specialises in urban affordable housing and commercial property projects, said yesterday it plans to expand out of South Africa’s 11 metropoles into the Southern African Development Community (SADC) in the next two years.
“TUHF’s growth reflects the sheer size of the prospering rental accommodation market and the opportunities this market represents in our ‘perfect niche’. With a track record over 20 years of financing over 50 000 units and investing over R8.3 billion into urban housing, we are keen to extend our impact further across South Africa and beyond the country’s borders by partnering with property entrepreneurs,” TUHF CEO Paul Jackson said in a statement Monday,
TUHF began as an inner-city financier in Johannesburg, but it progressively broadened its geographical footprint to align with the shifting demands of its markets. It is represented in South Africa’s metropolitan areas through a branch network.
Although TUHF began with urban regeneration in the inner city, focusing on affordable housing and black economic empowerment, the affordable housing landscape evolved, and the group extended its services beyond traditional inner-city areas to include “in-city areas,” he said.
“The expansion follows a well-defined in-city strategy. These areas, adjacent to the inner city and near key urban nodes, align with our market expansion strategy. For instance, in Johannesburg it would be to move with the market to areas like Linden, Randburg, Buccleuch, and Kew, among others,” said Jackson.
“Our approach has always been about nurturing micro-economies within city blocks and neighbourhoods, thereby creating a ripple effect of inclusivity and wealth mobility. This high-touch approach, distinguishing TUHF as an in-city financier, has been instrumental in stimulating business and employment opportunities, fostering mixed-use economies, and promoting mixed-income communities,” said Jackson.
An example of this was through its uMaStandi township programme launched in 2015. uMaStandi is a property company that provides commercial mortgage finance, training, and guidance to property entrepreneurs.
“There is enormous demand in South Africa for people to live in well-located townships – and we are delighted to have found significant interest from property entrepreneurs looking to develop in those communities,” Jackson said.
He said that as a specialised commercial property financier, TUHF found there was a large market niche in townships, where it was difficult to get commercial property finance at the scale – up to R5 million – in those communities.
“Before developing a business plan, we invite entrepreneurs to engage with us, to share their thoughts and price points, and to benefit from our intimate knowledge of the areas and the lessons we have learnt over the years. Our approval process, though thorough, can be quick, and completed within 21 days or less once all information is received. We walk with our clients throughout the entire process, ensuring a robust, sustainable, and commercially viable solution,” he said.
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