These were the remarks made by GIPF chief executive and principal officer David Nuyoma at the launch of Auasblick Extension 1 in Windhoek, on Friday.
He said for the period November 2011 to June 2022, GIPF serviced 5 591 erven and constructed 6 582 housing units countrywide across living standards measures, the bulk of which is in the affordable housing category.
He said the Auasblick project is an exemplary transaction in that it has enabled risk sharing among investors like the Development Bank of Namibia on the debt side, and Mergence with equity.
“The transaction is also a public-private partnership with the City of Windhoek, allowing for accelerated development. Transactions of this kind have high multiplier effects for job creation and money circulation,” said Nuyoma.
He said during servicing and construction, informal traders come to sell vetkoek and other foods to workers, and this example serves to demonstrate money circulation even at the lowest level.
“Finally, transactions of this nature endure for up to 48 months with internal rates of return in their mid-teens. So, not only are they impactful but they contribute positively to our investment objectives, giving impetus to our catalytic funding model at GIPF,” he said.
Nuyoma said the private markets allocations at GIPF are termed alternative investments and comprise of unlisted investments in real assets like property and infrastructure; equities and debt into businesses.
These mandates must meet the minimum investment objective of commensurate risk-adjusted returns, while achieving socio-economic impact.
Mandates for funding the construction of residential top structures and bulk services require a certain level of pre-sales for downside protection. The allocations to residential property are part of a larger diversified property exposure with bulk services competing with other economic infrastructure.
Recent notable developments in Windhoek funded through various fund managers over the past four years are Rocky Crest Extension 4 comprising of 231 single residential plots, 19 general residential plots, 22 business plots and two institutional plots.
There is also the Thorn Valley near Elisenheim comprising of 77 plots; Hosea Kutako Apartments comprising of 48 units; Riverport apartments comprising of 93 units; Otjomuise Extension 10 comprising of 71 units; Otjomuise Lifestyle Estate comprising of 374 rental units, and 324 units still to be constructed.
Other developments are Jedija Apartments in Kleine Kuppe comprising of 60 units; Erf 1470 Khomasdal comprising of 234 units; Khomasdal Extension 16 comprising of 432 rental units, and Sturrock Windhoek North comprising of 26 units.
Nuyoma said the first phase of funding for Auasblick comprising of 98 single residential erven, is a welcome addition which will bring the total land servicing to 5 689 plots.
“It is our resolve as a fund to remain active contributors to the housing provision pillar under the Harambee Prosperity Plan. For this to be realised, our local authorities have to be partners in contributing land as done by the City of Windhoek.
“Land at affordable rates is a condition precedent for any viable public private partnership project such as the one being launched today,” he said.
Email: matthew@namibian.com.na
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