HOUSING IN SOUTHERN AFRICA Page 4
The Gauteng Partnership Fund has a new lease on life. Originally the Public Private Partnership facilitator and broker was established by government with R450 million and had a pre-determined lifespan. The development financial institution provided products to the banking sector and developers to mitigate risk in the lower end of the housing market.
…” With households coming under pressure and housing afforda bility a key issue, he says that for many renting is the best option. “But there is not enough rental stock available and the banks are reluctant to invest in this sector in the long term. This means that someone else must promote rental funding options.” To meetthis need, the GPF has aggressively marketed and developed a new product promotingthe 'Emerging Entrepreneurial Property Fund' for investors who want to acquire suitable inner city buildings and convert into residential dwellings for under R15 million. “Our aim is to extend the funding reach apart from the traditional banking sector, and partner with DBSA, PIC and the National Empowerment Fund.