urbanis corporate presentation may 2012
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“AVisionforinclusivehousinginAfrica”
1. LowincomehousingGap2. Vision/Mission3. Urbanissolution4. BusinessModel5. ServiceOffering6. ManagementTeam7. OperatingModel8. Portfolio/TrackRecord
Agenda
Africa’sexplosivedemographicgrowth
The African population is growingatarateof2.4%ayear.
Itisestimatedthatby2030,50%ofAfricanswillliveincities;
The African workforce will reach1.1 billion people by 2040 ‐ thelargestintheworld(McKinsey);
Andby2050,Africawillbehometo1.9Billionpeople.
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1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
Africa
India
China
SoutheastAsia
La:nAmerica
Europe
NorthAmerica
Japan
Africa’sworkforcewillbecometheworld’slargestby2040Sizeoftheworking‐agepopulaGonMillion
Africa’sisfacinganurbanchallenge
By2040Africaisexpectedtobethe2nd most urbanized continent afterChina.
At current urbanization rates, anadditional 14million housing unitsper annum are needed in order toaccommodate the increasing urbandemand.
62% of the populations living inA f r i ca’ s c i t i e s ( 32 mi l l i onhouseholds) l ive in informalhousing where basic services arepoorornon‐existent.
Africafacesalargegapinlowincomehousing
Region Demand Supply
Sub‐SaharanAfrica
32millionhouseholdsinSub‐SaharanAfricaareconsideredinadequate.
Undercurrenturbanisa:onrates,anaddi:onal14millionhousingunitsperannumarerequired
308millionpeople;191millionofwhomliveininadequatehousing.
Kenya 60%ofhouseholdsareconsidered‘inadequate’housingandarelocatedinslums.
150,000unitsarerequiredperyear
Lessthan30,000unitssuppliedperyear Theannualdeficitisthusmorethan120,000
housingunitsperyear
Ghana Ghana’sannualdemandforhousingcurrentlystandsat120,000housingunitsperannum
Currenthousingsupplyprovides42,000unitsperannumwhichisonly35%ofthedemand
Nigeria 33.6millionNigerianslivinginurbanareas(46%oftheurbanpopula:on)areconsideredtobelivingininadequatehousing
Theannualdeficitis16millionunits 720,000unitsneedtobecreatedannuallyto
meetthedemand Currentsupplyishowevermee:ngonly3%of
thisdemand
Tanzania 80%oftheen:repopula:onislivinginunplanned,informalhousing.
Thehousingdeficitinurbanareasises:matedat1.2millionunits.
TheresponsetotheAfricanurbanexplosionmust not be, more unplanned and poorlyserviceddevelopments.Africa should learn from the mistakes ofmany European and American cites thatallowedthedevelopmentofsocialenclaves,which became the source of insecurity,social tension and frustration for the lowincomepopulation.The demand for housing should be metthrough the development of suburbanmixed income communities that offer ahealthy social environment, and economicopportunities.
Vision for African housing
ThevisionofUrbanisAfricaistoenabletheordinaryAfricans,mostofwhomareactivein the informal sector, to acquire a housewithin their Tinancialmeansandraise theirfami l i e s in a sa fe , c l ean , hea l thyenvironment with access to world classeducationandeconomicopportunities.Insodoing, Urbanis achieves social impact,environmentalandTinancialreturns.
Urbanisaimstoimplementitsmodelacrossthe African continent, and will encouragemanydeveloperstoemulateitsmodel.
The mission of Urbanis Africa is to enablethe majority of Africans living in cities tohave an opportunity to own a house,workand raise a family, in a clean and family‐friendlyenvironment.
TheCompany’sobjectivesareasfollows:
Deve l op p l anned m i xed i n c omecommunities across the continent thatimplement state of the art, low carbonfootprinttechnology
Mission and Objectives
Provide a ‘one‐stop shop’ approach todelivering housing solutions, by buildingpartnerships with all the players in thevalue chain, including the commercialbanks.
Design inclusive solutions to unlockmortgage Tinancing for informal sectorborrowersand;
Deliver affordable housing within aproTitablebusinessmodel.
Urbanis Africa contributes to resolvingthe problem of affordable housing inAfricausingthefollowingtools;
Cro s s s ub s i d i z a t i on : A c h i eveaffordability through mixed incomehousing communities, and apply crosssubsidization between middle and lowincomehousingunits. Collaboration: Create a network ofpartners around each project includingdesigners,contractors,bankers, Tinanciersetc
UrbanisSolution
Rapid construction: Accelerate thespeed of construction through theuseofpre‐castconcrete.
Low cost of ownership: Reducerecurring cost to owner by usinggreen technology ( Waste recycling,Solarenergy,rainwaterstorageetc..)
Buildingattheperiphery:Urbanisachieves affordability by buildingintegrated housing communitieswith Residential, Economic andSocial amenities at the periphery oflargeurbancenters.
AchievingSocioEconomicValue
UrbanisAfricaaimstomaximizesocioeconomicvalue….
AverageprojectIRRof25% MinimumProjectprofitmarginof20%. Averagepaybackperiod,4years.
FinancialReturn
CreatelocalEmployment Providelowincomehousing CreateEconomicopportuni:es Providebecereduca:on
SocialReturn
RiskManagement
EnvironmentalReturns
• EconomicBenefitforInvestors.• EconomicBenefitsforhomebuyers(affordability)• EconomicBenefitsforthecommunity• SocialBenefitfortheresidents• SocialBenefitsforthecommunity
SocioEconomicValue
SocioEconomicValueProposi:on
CreatelocalEmployment Providelowincomehousing CreateEconomicopportuni:es Providebecereduca:on
SolarPoweredpublicareas Recycledwastewater Rainwatercapture RecycledSolidWaste 40%ofpropertyreservedforgreenspaces.
Business Model
UrbanisAfrica
ArchitecturalDesign
FinancialStructuring
ProjectManagement
SupplyChainManagement
EquityInvestment
Opera:onalManagement
Construc:onTechnology
Urbanis’Africaisarealestatedeveloperspecialized in bottom‐of‐the‐pyramidresidentialandcommercialprojects.
Urbanis sets up a Special PurposeVehicle(SPV)foreachprojectitinitiatesand brings to each project a differentgroupof investors and lenderswhoareexposedexclusivelytoasingleproject.
As adeveloper,Urbanis takes an equityparticipation in its projects. It isremunerated through developer's feesandsweatequity.
BusinessModel(cont)_
EquityInvestorQuasi–EquityInvestors
Financiers(Debt)
URBANIS
SPV(CountrySpeci]ic)
ContractorLocalInvestor
Government
MortgageBanks
MFI’s
HomeBuyer
Thecompanybuildsalliancesandpartnershipsacrossthevaluechain,hencecreatingamicrocosmthataddressesthehousingproblemholistically.
Service Offering
PROJECT
ORIGINATION
FEASIBILITYSTUDY
MASTERPLANNING
ARCHITECTURAL&TECHNICAL
DESIGN
FINANCIALSTRTUCTURING
PROJECTFUNDING
PROJECTMANAGEMENT
PROPERTYMANAGEMENT
Urbanis’AfricaProvidesservicesthatspanacrosstheentiredevelopmentvaluechain.
Thecompanymanagesprojectsfrominceptiontopostcompletionmanagement.
UrbanisAfricaprovidesthemanagementservicesthroughsubsidiariesthatitestablishesincountrieswheretheprojectsarelocated.
IntegratedServiceOffering
DevelopmentManagement FinancialAdvisory Construc:on PropertyManagement
UrbanisAfrica
ProjectConceptualDesign
Architecturalandtechnicaldesign
Projectdevelopment
ProjectExecu:onandManagement
ProjectFinancialfeasibility
FinancialModeling
Financialrestructuring SourcingofEquityand
Debtfunding
FinancialManagementofprojects
Rapidconstruc:onbasedonprecastconcreteandformwork.
EstateManagement
CommercialAssetsManagement
U:lityandWasterManagement
CommunityProjects
Urbanisprovidesandintegratedsuiteofservicesthatenablesthecompanytomanagebottom‐of‐the‐pyramidresidentialandcommercialprojectfrominceptiontopostdeliveryacrossAfrica.
CompetentManagementTeam
WaganeDiouf,ChiefExecutiveOf]icer:• FounderandCEOofUrbanisAfrica• 12YearsexperienceinImpactInvestingandPrivateEquity• BachelorinComputerSciencefromESGI(Paris)• BachelorinFinancefromESG(Paris)• ExecutiveMBAfromtheGeorgiaInstituteofTechnology
JakoyoPatrickAiro,ChiefOperatingOf]icer:• ChiefOperatingOfTicerofUrbanisAfrica• 30 Years experience in project Tinance, large scaleprojectmanagement,realestateandmanufacturing.• MBA from University of Nairobi,Bachelor of fromNewcastleUniversity,UK
FrancisOtieno,HeadofPropertyManagement• PropertyManager• 20 years experience in all aspects of propertymanagementandvaluation.• B.A.LandEconomics (Hons)degree fromUniversityofNairobi
JacobOrioki,ChiefAccountant• ResponsibleforgroupaccountingandFinance• 27 years practical experience in senior levelManagementinAccountingandFinancialAdministration• CertiTiedPublicAccountantofKenya(CPAK)andholdsaB.Comm degree in Accounting from the University ofNairobi.
CatherineWarega,HeadofSalesandMarketing• Responsibleforgroupsalesandmarketing• 10yearsexperienceinresidentialandcommercialrealestateinKenya.• Post Graduate degree in Real Estate Agency andPropertyManagement,UniversityofNairobi
JeremyChildress,FinancialAnalyst• Tinancialanalysis&structuring• progressive experience in Tinancial analysis &structuring• University of Southern California with degrees inEconomicsandCorporateFinance
FranciscaWanbua,CorporateLawyer• GroupCorporateLegalOfTicer• AdvocateoftheHighCourt• Extensive litigation and Corporate law practice in theTieldofconveyancy
Governance/OwnershipStructure
UrbanisSweden(Stockholm)
UrbanisAfrica(Nairobi)
JamiiBoraMakao(SPV)
KenaniHousingCo.(SPV)
UrbanisBuildingTechnology
Execu:veManagement
EquityEquity
Equity+ManagementContract
Managementcontract Equity Equity
UrbanisCleanEnergySolu:ons
OperatingCompany:JamiiBoraMakao.
Location: Kaputiei within Kisaju Town offNamangaRoad,60KmsfromNairobiCBD.
Description: Mixed income communitytargeting 2000 residential units and 2000and1164commercialunits.
Price range: KShs. 1.2million ($14,000) toKShs.5million($58,000)
Additional Amenities: Police, Clinic,Primaryandsecondaryschools,
TotalprojectCost:KShs.5Billion
Stage: To date780 houseshave been builtandsold.
PortfolioJamiiBoraMakao
Portfolio–KenaniHousingCompany
Operating Company: Kenani HousingCompanyLtd.
Location: Lukenya, nearAthi River, located 37kilometerssoutheastofNairobiCBD,ona230acresplotofland.
Description: Mixed income communitytargeting 2,400 residential units ( apartmentsandMaisonettes)and1,000commercialunitsinPhaseI.
Price range: KShs. 1.4 million ($16,000) toKShs.7.0million($82,000)
AdditionalAmenities: Police, Clinic, Primaryandsecondaryschools,
TotalprojectCost:KShs.l6Billion
Stage:FinancialclosingprojectedinApril2011.GroundbreakingJune2011.
UrbanisAfricaLimited.5thFloor,ContrustHouseMoiAvenueP.O.Box57618‐00200NAIROBI
Tel:Email:info@urbanisafrica.com
www.urbanisafrica.com
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