Case Study 15 | Raising Capital to Regenerate Inner Cities

Rental is a significant form of tenure in major African cities; upwards of 78 percent of households in Abidjan , Côte d’Ivoire rent their dwellings, with similarly high proportions in Dar es Salaam, Tanzania (over 50 percent) and in Dakar, Senegal (47 percent). It is argued that there is relatively little data available on the key aspects of the rental market and a serious challenge to market growth is the difficulty in accessing information on the product offerings and operating models of finance providers, estate agents, credit bureaus and property management companies that typically support the sector. This case study explores the story of TUHF Holdings (Pty) Ltd. TUHF is a specialised commercial property financier based in South Africa, that drives inner city investment by providing access to finance for landlord entrepreneurs from all walks of life, to purchase, convert and/or refurbish buildings to provide affordable residential rental in the inner city.

The case study explores TUHF’s growth and investment challenges over the past 15 years, tracking its transition from a not-for-profit company, heavily reliant on bilateral development finance, to a private company accessing private equity and commercial finance, and finally into its current form as a public company with entry into the listed capital markets. It investigates the way TUHF has modified its structure and financing strategy over time in response to its evolving funding needs.  The case study considers the implications of these lessons for TUHF and its ZAR 10 billion (USD 705 million) vision, as well as for the possibility of replicating TUHF’s business model and investment approach in other African cities.