- Namibia, Windhoek
- Affordable Housing
- 361 units (phased)
- US$ 6.200.0000
- Separate land investor open for discussion
- Pre-approved clientele National Housing Enterprise
- ROI investor 20%
- Equity funding
Location
Windhoek urban area has a total of about 340,000 inhabitants and 89,000 households with an average size of 3.7 persons per household. About 26% of the households are located in informal settlements. The city has developed at a fast pace during the last 10 years with 7 suburbs either developed from scratch or extended. Windhoek’s property demand per month stands over 300 units while supply is just under 200. Windhoek offers a robust and flexible market. The landscape is mountainous with steep slopes and dongas. The soil is rocky making it intensive and costly to develop as it requires a lot of earthworks in some parts.
The planned township is situated about 5 kilometres on the main road from Windhoek to Okahandja and is 24.7 Ha in size. The 25 hectare of unimproved land is demarcated and already zoned for the development of 253 free standing houses, 8 bulk residential blocks, 2 business stands and 5 public open spaces. The promoter aims to acquire the already zoned green-field land, install bulk services including water, sewage, electrical and road networks, and sell the serviced stands.
Sales Strategy
Each phase of the development shall have an open-day at least one month prior to the start of the development. Only after 60% of the property is pre-sold and the bank pre-approvals are collected, construction shall commence. Apart from organizing an open-day for each phase, other on-going marketing activities will be carried throughout the project's life span to speed up the sale of units and eventually the project turnover time.
The project has been negotiated with the NHE (National Housing Enterprise) to tap into their pre-approved clientele of which a copy is in the possession of the promoters. The applicable clients will be notified by the NHE about the available properties to be sold by the project based on their pre-approval amounts. The NHE pre-approval list consist of over 15,000 applicants list with pre-approval amounts ranging between NAD 200,000 and NAD 1,400,000.
Project Ownership Structure
The Project will be registered as a Special Purpose Vehicle with a local Namibian legal firm from which funds will be administered until project close-out. The equity holders in the project shall be the promoter as project initiator and investment partner.
The project partnership is expected to be registered as a Trust Deed with their respective shareholding percentages with the financier taking a majority equity stake. The Trust Deed will regulate the project’s constitution. The Trust Deed will define important covenants such as signing powers, voting powers, seniority of profit distribution and capital drawdown policies and procedures.
The promoter will co-develop with the investment company or its nominated developer. There are several companies affiliated to the promoter that will do the construction, preferably on a closed-tender basis.
Interested? For more information including business plans, please contact:
Office Europe
Jan Reijer Brons
jrb@firmfactoryafrica.com
+31653354494
Office Europe
Jan Reijer Brons
jrb@firmfactoryafrica.com
+31653354494