Funding Instruments

Funding Instruments

Challenges in housing delivery are complex and thus require collaboration between public and private sector. Innovative funding models required to address the development and funding challenges. GPF is open to engage with all stakeholders to find viable solutions.

Challenges in housing delivery are complex and thus require collaboration between public and private sector. Innovative funding models required to address the development and funding challenges. GPF is open to engage with all stakeholders to find viable solutions.

  • Equity
  • Debt

       – Short term

          › Working capital

          › Bridging finance

      – Long term

  • Bulk Infrastructure Funding

Track Record

2013-2016 Performance

  • Solid delivery track record and proven funding methodology.
  • More than R1,5bn GPF funding provided to developers.
  • Approx. R3bn leveraged from private and public sector.
  • More than 18 000 completed units.
  • Job creation, local economic development and SME support.
 

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Infrastructure Funding Gap

Funding cost to meet Africa’s infrastructure needs is estimated at $93bn.- World Bank.

According to the Gauteng Infrastructure Master Plan, it is estimated that R1.8 trillion will be required to meet infrastructure needs over the next 15 years.

Infrastructure deficit remains a stumbling block to housing delivery.

Housing delivery is dependent on provision of social and economic infrastructure.

Given the sluggish economic growth, the domestic resources have been under immense pressure exacerbated by the urgent need to address the infrastructure backlog.

More innovative financing required to bridge the gap between what is available and what we need to address the infrastructure backlog.

Gauteng Mega Projects Fund

Salient Features

  • Fund will be structured as a Limited Partnership (LP) fund.
  • Opportunity for institutional investors to participate in the housing sector and related infrastructure projects.
  • Fund size of R30bn, with a first closing of R500m.
  • Fund to provide opportunity to invest in entire value chain in mega projects.
  • Investors to provide the investment funding for the Fund, from which the Fund Manager will make investments.

Lindiwe Kwele – Information Officer
Thandiwe Kuzwayo – Deputy Information Officer

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