OMAI’s Impact Investing Capability Acquires 188-unit Green Development To Drive Affordable Sustainable Housing Options In SA
OMAI’s Impact Investing Capability Acquires 188-unit Green Development To Drive Affordable Sustainable Housing Options In SA. Old Mutual Impact Investing, a division of Old Mutual Alternative Investments (OMAI), has acquired 188 two-bedroom, sectional title apartments, through its Financial Sector Charter (FSC) Fund in partnership with ASRIN Property Developers. The overall size of the transaction is approximately ZAR128 M and is part of the funds mandate to increase affordable housing options in South Africa.
According to Tebogo Mokgata, OMAI’s Impact Investing Executive Member, the rental housing fund invests in assets that provide access to safe, quality, and affordable housing to underserved households and communities in South Africa. It is reported that South Africa has a housing shortage of 3.7 million. The fund looks for opportunities to contribute to addressing the housing issue facing the country.The two-bedroom apartments are part of the residential estate Stellendale Village, situated in Kuils River, Cape Town. The starting rentals of R7 000 per month fall within the affordable rentals market nationally, making the development well placed within the middle-income segment.
South Africans face a shortage of reasonably priced housing options amid current market conditions, a situation that has been exacerbated by the Covid-19 pandemic. We are immensely proud that this transaction moves the dial from the point of making a positive social impact and achieving targeted investment returns,” she said. The deal between OMAI’s Financial Sector Charter (FSC) Fund and ASRIN Property Developers will be held as a long-term investment in the fund’s rental housing portfolio, OMRENT. Mokgata said that the fund continued to be focused on finding quality assets while being aligned with OMAI’s transformation and green building objectives.
ASRIN, is a B-BBEE Level 1, 100% black-owned and managed company who has delivered over 7000 residential units and has a significant pipeline of developments in the Cape Peninsula area.In addition to the transformation priority, the investment also aligns with OMAI’s sustainability goals. The development will be built in line with the Green Building Council of SA’s EDGE standards, ensuring carbon emission reductions, water savings and lower utility costs.
“We are committed to uplifting and empowering historically disadvantaged individuals and communities. That’s why we are proud to partner with OMAI in this respect to ensure that more South Africans will be able to improve their standard of living through affordable quality housing options,” said ASRIN CEO Ishmail Essa.
“At OMAI, we view impact investing as socially responsible investment. Through it we deliver positive as well as measurable social and environmental benefits. By optimally deploying investors’ capital and bringing together the capabilities of the investment sector and affordable housing developers, we can strengthen and help communities thrive,” said Mokgata. “Through equitable economic opportunities, we can accelerate our efforts to address some of the systemic and structural economic issues we are faced with as a country.”
