The Fleurhof Integrated Human Settlement Development in Florida (Gauteng), officially launched by Minister of Human Settlements Tokyo Sexwale, is a prime example of a private and public partnership that has successfully brought positive social impact to the province.
One of South Africa’s top affordable housing developments, the Fleurhof Integrated Human Settlement Development located in Florida and close to Soweto, Gauteng, is officially launched by Human Settlements Minister Tokyo Sexwale. Fleurhof has been recognised as a prime example of the social impact that successful collaboration between private and public partners can make, while it has already attracted the attention of the international investment community. The R2.8 billion project, started in 2009, will ultimately include more than 8 000 low-and-middle income housing units, eight nursery schools, five schools, numerous community gardens and play areas, and several business and industrial areas. The project is a joint venture between global private equity funder International Housing Solutions (IHS) and Calgro M3, a listed development company. The project has also benefitted from significant input by and collaboration between the developer partners and the Department of Human Settlements along with the City of Johannesburg. International Housing Solutions is the global private equity firm at the forefront of affordable housing development in South Africa. It partners with financial institutions, real estate developers and local government authorities to provide equity finance for housing projects. Launched in 2006, its R1.9 billion-strong SA Workforce Housing Fund received capital injections from North American and Southern African organisations, including Citibank, the Development Bank of SA, the Public Investment Corporation on behalf of the Government Employees Pension Fund (GEPF) and the Overseas Private Investment Corporation (OPIC). IHS Managing Partner, Rob Wesselo, says the company was particularly proud of the Fleurhof project, as it not only provided quality housing in line with the IHS philosophy of funding the communities of the future, but also served as a prime example of the potential of the sector, which was bound to attract significant international investment interest.
“Fleurhof has made a social impact, in employing more than 1000 skilled and unskilled local workers, and it will continue to create a lasting social legacy as a result of the proactive inclusion of schools, business hubs and community centres in the development blueprint.
“Additionally, the project has already been highlighted in the Emerging Markets Private Equity Association’s (EMPEA) Impact Case Study Series, to show the value these kinds of projects provide their investors. We are hopeful that its success will continue to attract further attention from global institutional investors seeking a well-positioned market offering strong returns at lower risk.” International Housing Solutions is a member of the Emerging Markets Private Equity Association (EMPEA) Africa Council. Source: http://www.eprop.co.za
