About Me

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I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
 
Please visit our website at www.prop-law.co.za for more details.
 
I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.

I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
 
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.

05 July 2013

FUNDING REQUIRED FOR AFFORDABLE HOUSING

I have the absolute pleasure to represent clients who are the embodyment of the South African entrepreneurial spirit.

Their Property Development Company is 100% owned by previously dissadvantaged individuals, who don't necessarily have the connections with government or municipalities that could give them the easy route of securing a tender via the back door.

Instead, they have built a sustainable company from the ground up.  Initially operating as a construction company taking on houses in the existing affordable housing developments of the very big companies operating in this sector, they have not only dreamed bigger but have embraced their dream and forged ahead against the odds and they are now poised on the brink of achieving their dream of becoming fully fledged property developers.

How have they done it?

They have secured land from land owners through options and offers to purchase with relatively long lead times for development of affordable housing.  These land parcels are universally agreed to be extremely well situated for the purpose of affordable housing.  The banks have admitted as much.  Through various agreements with professionals, who have agreed to defer payment of their fees, these gentlemen have managed to get the developments to the point of Proclamation.

They have struck a similar deal with a Civils Company to install the services and receive payment at a later stage as a percentage of sales.  They have also brokered a deal for financing of the top structures that can, unfortunately, only be finalised on Proclamation.

They are now at a stage where they need to take transfer of the properties.  I have put them in contact with the relevant divisions at banks in order to try and secure the necessary funding.  However, it seems to be a rule of universal application amongst banks that they will not finance "first time developers".

It seems that this rule supercedes the fact that these gentlemen have achieved so much already ... without outside funding.

The first project consists of 500 units and I have undertaken to see what I can do for them with regard to sourcing the funds they require.

If anyone has any suggestions with regard to potential sources of funding, I would really appreciate it if you could contact me at gareth@propertylaw.onmicrosoft.com

Gareth Shepperson

2 comments:

  1. What a great idea for company ownership and vision for the future.

    What House?

    ReplyDelete
  2. Get Tenders of your choice of Product category, Location, Value, Public and Private Sector Companies etc. on daily basis.


    tenders online & tender management

    ReplyDelete