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Case Study: Africrest Properties

  • 22 May 2024
  • 3 min read

Housing Demand

The Centre for Affordable Housing in South Africa (CAHF) estimates that in 2022 about 16% of households in metropolitan areas lived in informal housing, with many of these being backyard dwellings or informal settlements.

CAHF indicated that a combination of factors, including land constraints and increased densification (particularly in Gauteng) is perpetuating the urgent need for affordable accommodation. In addition, a failing economy, rising living expenses and high unemployment have all contributed to an increased demand for affordable rental accommodation, with increased reliance on the private sector to fill the gap. 

Futuregrowth investment

Futuregrowth has a long history of supporting and deploying client funds into the affordable housing and residential rental sectors. We partner with companies that have sustainable solutions to address the housing problem. In this way, Futuregrowth’s clients can contribute to reducing the housing gap and make a positive impact in the lives of South Africans.

Futuregrowth’s investee companies play an important role in providing quality rental accommodation, particularly in the Gauteng market, one of these being Africrest Properties. Futuregrowth has deployed a total of

R2 billion across debt and equity investments with a further R1.05 billion to be deployed within the next 12 months. 

Impact of the affordable rental accommodation

The Africrest team has developed unique market insights to identify up-and-coming residential nodes. Leveraging insights from their commercial property portfolio, they identify commercial properties in nodes that lend themselves to redevelopment into residential accommodation.

Africrest owns one of the largest middle income residential portfolios in South Africa and has become an industry leader in this asset class. They specialise in converting office buildings into beautiful residential estates. They also develop greenfield apartment communities that are safe to live in, with world-class facilities such as fully equipped gyms, A-grade work-from-home facilities, entertainment areas, swimming pools, soccer courts and braai areas, to name a few.

While typically offering accommodation at a higher price point than inner-city rental accommodation, the Africrest properties are nonetheless competitively priced and provide access to accommodation in areas close to major employers and commercial hubs, where their tenants may not otherwise be able to live.

By developing integrated neighbourhoods in centrally located areas, Africrest brings historically marginalised households into the urban core. They offer affordable rental solutions and provide households with the opportunity to live in sustainable urban environments close to where they work and with access to the essential amenities required to get ahead in life.

Impact across SDGs

Tags: Real Estate Impact Investing Infrastructure Investing

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