Affordable housing rental finance

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Affordable housing rental finance
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

Provide affordable housing finance to households outside the formal banking system and with limited credit history, at conditioned repayment rates

Expected Impact

Enhance access to affordable housing for households outside the formal banking system

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).
20% - 25% (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.
Medium Term (5–10 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.
Housing gap of 6-8 million units in Brazil, over 90% in affordable housing sector (13)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Reduced Inequalities (SDG 10) Gender Equality (SDG 5) Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • 1) Bertelsmann Stiftung, 2019, 2) World Bank, 2019, 3) Globo, 2019, 4) Correio Braziliense, 2018,,717118/novo-governo-planeja-viabilizar-investimentos-e-r-180-bi-na-infraestr.shtml 5) OECO, 2012, 6) Correio da Bahia, 2018, 7) Agénor, Pierre-Richard, and Otaviano Canuto. 2013. “Gender Equality and Economic Growth in Brazil.” The World Bank, 8) Onsrud, Hazel, Silvane Paixao, and Sue Nichols. 2005. “Women and Land Reform in Brazil.” Department of Geodesy and Geomatics Engineering University of New Brunswick.
IOA Sources
  • 9) Habitat for Humanity, 2017, 10) Folha de São Paulo, 2018, 11) Istoé, 2016, 12) Globo, 2017, 13) MMC Investimentos, 2019, 14) Dalberg interviews, 2019 15) Next Billion, 2012, 16) Globo, 2019, 17) Rede Brasil Atual, 2019, 18) Banco Central do Brasil, 2019, 19) Ministério do Desenvolvimento Regional, "Programa Minha Casa, Minha Vida (MCMV)" 20) United Nations Global SDG Database. “SDG Indicators.”