Affordable housing from inner city buildings

Affordable housing from inner city buildings

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Affordable housing from inner city buildings
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Real Estate
Business Model Description

Repurpose abandoned or underutilised office buildings for low cost housing.

Expected Impact

Enhance access to good quality and affordable housing especially for the urban workforce.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Nationally, the housing deficit is estimated at 2.3 million units.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 2) National Science and Technology Forum (2019). The National Development Plan. 3) Le Roux, A., Arnold, K., Makhanya, S. and Mans, G. (2019). South Africa’s urban future: Growth projections for 2050. Green Book. 4) Industrial Development Corporation (2019). The Case For Investing in South Africa. 5) Sustainable Infrastructure Development Symposium (2020). Sustainable Infrastructure Development Symposium South Africa.
  • 6) Deloitte (2020). The Impact of COVID-19 on infrastructure projects and assets. 7) Arndt, C., Davies, R., Gabriel, S., Harris, L., Makrelov, K., Modise, B., Robinson, S., Simbanegavi, W., van Seventer, D. and Anderson, L. (2020). Impact of Covid-19 on the South African economy. 8) Organization for Economic Cooperation and Development (2019). Gender Equality and Sustainable Infrastructure. 9) Organization for Economic Cooperation and Development (2019). Social Institutions and Gender Index 2019.
IOA Sources
  • 10) Centre for Affordable Housing Finance (2019). Yearbook - South Africa 2019. 11) Centre for Affordable Housing Finance (2019). Case Study: TUHF Holdings Pty Ltd. 12) South African Human Rights Commission (2020). The Right to Adequate Housing Factsheet. 13) Centre for Affordable Housing Finance (2019). Building the investment case for mid-lower end housing. 14) Email correspondence with Katherine Cox from TUHF on 24/7/2020.
  • 15) Centre for Affordable Housing Finance (2019). Housing Finance in South Africa. 16) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. 17) Statistics South Africa (2017). Sustainable Development Goals: Baseline Report 2017. 18) Centre for Affordable Housing Finance (2018). Investment and Economic Empowerment Opportunities in South Africa's Affordable Housing Sector. 19) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa.
  • 20) Interview with Monique Mathys from IMP on 15/04/2020. 21) Ngwenya, M. (2017). Johannesburg Inner City's Appropriated Buildings: Residents' responses to vulnerability and precarious living conditions. 22) APNews (2019). Life In Johannesburg's Hijacked Buildings. 23) South African Government. Constitution of the Republic of South Africa1996: Section 26(2).