Investment Policy Applicants under this programme should be first time property entrepreneurs. Should the applicant submit the second project, the project will be considered under the Rental Housing Fund as per clause 5.2 The GPF may gear up to 40% of total project costs. This includes an interest-free loan to a maximum of R2 million, repayable from year 6 post the moratorium period, or earlier, in equal instalment over 5 years. This will be used to fund project costs. At least 75% of professionals must have majority BBBEEE shareholding. The interest free loan will be utilised first, followed by the interest-bearing loan. The maximum total project cost under the EEPF programme may be R20 million, projects above R20 million must be approved by the Board of Trustees. Minimum equity contribution should be 3% of total project cost The GPF will not gear more than 30% of the total project. The applicants under the rental programme should have completed at least one project. The equity contribution to the rental programme is a minimum of 5% of total development costs.


5.2.2. Rental Housing Fund – Pricing

5.3.1. Social Housing Fund – Funding criteria

The GPF may gear social housing projects up to 30% of project costs. The GPF will not gear more than 30% of the total project cost. The Borrower is expected to contribute a minimum of 10% equity to the total project cost. The project must be located within a 10km radius of the targeted tertiary institution. In exceptional circumstances, projects that are located outside the 10km radius but within 20km may be considered for funding with the approval of the GPF Board of Trustees. Transport must be provided by the project promoter for any projects further than 1.5km or availability of alternative public transport must be demonstrated by the developer to cater to the students. Priority will be given to projects located in townships and existing student accommodation hubs as well as within the Transit Oriented Development Zones. The repayment of the loan must be structured over 10 months for a single year. Single rooms should be no smaller than 9m2, and double rooms should be no smaller than 14m2. Rooms should be furnished and fitted as per the specifications detailed in the Minimum Standards for Student Housing as per DHET guidelines.


5.4.2. Student Accommodation Fund – Pricing

The purpose of the PBHL fund is to provide financial assistance to selected RFIs for on-lending to end-users who earn between R3, 500 and R20, 000 per month and who’s houses/properties are located within Mega Projects.


5.5.1. PBHL Fund – Funding Criteria


Applicants must: Be fully licenced (Registered with NCR and FSCA to provide pension backed loans). Submit a detailed business plan (including financial projections). Provide proof of approval of the scheme by the pension fund trustees. Provide proof of an undertaking by the employer that they will affect monthly deductions from the employee’s wages/salary to repay the pension-backed loan. Submit Audited financial statements for at least three years and current year’s latest management accounts.



5.5.2. PBHL Fund – Funding Criteria GPF loans to RFIs under the PBHL facility will range from R 2 million (minimum) to R 20 million (maximum). All loans issued by an RFI under the GPF PBHL fund must be for housing purposes such as purchasing land or a house, or making improvements on an existing house. Loans to the end-users to be limited to 60% of their accumulated retirement savings. Loan term under the PBHL fund will be a maximum of 10 years. GPF security under the PBHL fund will include but not limited to the following:


a)  Cession of Retirement Fund Guarantee;


b) Reversionary cession of the receivables book;


c) Cession of insurance;


d) Debt Service Reserve Account; and


e) Cession of other securities taken by the RFI from end-borrowers.


5.5.3. PBHL Fund – Pricing