Tuhf

ABOUT US

At TUHF, we identify and unearth potential.

In declining areas, we see thriving property markets. In run-down buildings, we see the potential for families to live in a safe and secure environment. In people, we see the entrepreneurial capability to create well-run businesses, providing employment and multiplying our economy. We provide access to ?nance for entrepreneurs, from all walks of life, to purchase, and subsequently convert or refurbish buildings in the inner cities of South Africa to affordable residential units available for rental.

We also provide support, guidance and risk management for new entrepreneurs. In our 13 years, we have financed over R4bn in inner city residential rental property and currently our loan book holds over 20 000 residential units. This is not to mention the hundreds of successful property entrepreneurs who are now running sustainable residential rental businesses, providing affordable and decent living spaces in our inner cities.

What we do

We provide access to finance to people with passion, potential and integrity for purchasing, converting or refurbishing buildings in the inner cities of South Africa. Our hands-on approach and specialised knowledge of the complexities of inner cities enables us to empower our clients to catalyse the regeneration of our neighbourhoods and communities.

What makes us TUHF?

• Our unique ability to spot potential in all kinds of people
• Our ability to support, grow with and develop people
• The way in which we connect and build relationships between different people, parties and communities
• Our specialist and unparalleled knowledge of the complexities of inner cities

SERVICES

What makes us different

We are much more than a traditional bank or non-bank ?nancial services company and our entrepreneurs are much more than customers. Apart from providing access to finance for purchase and refurbishment to people with property passion and potential, we support entrepreneurs throughout the entire process from negotiating a purchase price to construction and rent up by offering experience, knowledge and expertise during your 15 year loan term with us. We work with the entrepreneur to ensure that the project is feasible, the purchase price reasonable and that local market conditions are met. We ensure that there is a good fit between the entrepreneur and the building as well as a balance between the financial demands of the purchase and the rentals that can be realistically expected. At TUHF we encourage our clients to develop their property interests, thereby enabling them to grow from part-time to full-time property entrepreneurs. When considering a loan, we look at the person first and then the project. The entrepreneurial character and competence of the entrepreneur forms the basis of the way in which we make decisions. We offer onboarding, training and mentoring for starter entrepreneurs through our TUHF Program for Property Entrepreneurs (TPPE). We also host TUHF Talks where industry experts share industry and market related trends and information on challenges close to inner city property entrepreneurship. Whether the project is large or small, TUHF clients enjoy the same expert advice, quick decision making and network of contacts.

Finance for inner city mixed use developments of which the largest component should be residential up to the value of R50 million. We work with projects from small semi-detached houses up to buildings with many hundreds of units. Ideal for:

• Purchase only – no construction or refurbishment
• Purchase plus construction including refurbishment
• Construction only (includes refurbishment, conversion or new build)
• Conversion from office space to a light industrial building to residential
• Equity release (a loan facility against increased or residual value for the acquisition or improvement of another (different) property)
• Refinance (either an increase of an existing loan or refinancing a third party bondholder for the property)
• New build
• Owners who live in an inner city building and wish to buy more units to become a landlord.

The Loan

• A single loan facility includes both the purchase and construction components of your project
• Your loan is repaid over 15 years
• Prime linked interest rate.
• Once-off raising fee.
• No monthly service fees.
• Financial structuring such as grace periods to accommodate the development and rent-up stages.

Requirements

• 20% Equity of the purchase price – see Intuthuko Equity Fund if you do not have the full 20%
• A signed Offer to Purchase/Deed of Sale
• FICA Documents
• Financials

How we work

We encourage our starter clients to start small and increase the size of their property portfolio as they gain the necessary confidence and ability through experience. This approach facilitates the entrepreneur’s ability to change from a part-time to full-time property entrepreneur. We work with you as our client on a feasibility document to ensure that the project will earn enough money to cover your utilities, rates and taxes, bond and operating expenses. Therefore we do not finance you based on how much money you earn, but rather on whether or not your project will be able to cover all costs and expenses on its own. More importantly, we look at who you are as a person; we call this our character based lending approach. When considering your loan application, we look at the collateral value of the building, and will lend to a maximum of 80% of the collateral value. This means we look at the total project cost and will provide up to 80% finance of this cost. You as entrepreneur have to contribute the other 20%. If you do not have the full 20%, please visit our Intuthuko Equity Fund. TUHF also looks at the cash flow of the individual or business and requires that the ratio of net income after expenses to loan repayment be 1.3.

TUHF Entrepreneurs:

• have an honest and reliable character
• know the inner city areas in which they’re investing
• have the right property management skills and network of contacts for the size of their project
• can provide good customer service and firm credit control
• are proud of owning well-maintained, clean buildings
• are confident they will make sufficient profit from their business
• have the interests of urban regeneration at heart

TUHF Projects:

• are in major city centres that are in urban decline
• are close to schools, transport systems and places of work
• are economically sustainable - able to generate suf?cient income to repay expenses, as well as service the loan and make a pro?t
• will upgrade buildings in the selected inner city area providing affordable and decent residential rental units
• have a positive effective on the areas in which they are based.

Our products are designed to make it easier and more affordable for you to achieve your goals as committed property entrepreneur.

Our TUHF Program for Property Entrepreneurship (TPPE) is available to TUHF clients with the aim of supporting our starter entrepreneurs to move on to becoming emerging entrepreneurs and one day established entrepreneurs.

One of the initiatives in the TPPE is our 6 month course in conjunction with Professor Francois Viruly from the University of Cape Town (UCT).

TUHF has a proven track record showing over a decade of commercial viability and social impact. For over 13 years, we have driven social change and economic empowerment in inner cities while simultaneously delivering returns for our investors. Click on the links below to find out more about our investors, the impact we are having in the areas where we operate and to view our Annual Reports archive.