The Inner City Regeneration Fund (ICRF) is a social housing initiative based in Johannesburg, South Africa, aimed at addressing the critical shortage of affordable and decent housing for low-income communities. It was launched from the foundation of The Housing Hub, a developer with a substantial portfolio in social housing. The fund, led by CEO Steyn Fourie, focuses on acquiring, renovating, and managing properties within urban areas to improve living standards and foster community development.
The Housing Hub has developed 1,480 housing units, and land has been acquired for the development of a further 1,000 units this year. Its current portfolio of $15 million forms the basis from which ICRF was launched during 2023.
Key aspects of the Inner City Regeneration Fund (ICRF) include:
Objective: To mobilize funding for acquiring and refurbishing inner-city properties, thereby delivering quality affordable housing and empowering communities.
Value Proposition: Includes increasing the delivery of social housing, promoting public-private partnerships, sector transformation, job creation, and the introduction of technology for better living conditions.
Structure: The multifaceted structure of the project, encompassing a range of dedicated entities including ICRF PropCo, RentCo, RefurbCo, UtilityCo, and others, forms the backbone of its operational strategy. This comprehensive framework is meticulously designed to manage every aspect of the project with precision and expertise. Each entity plays a critical role, from property management and rental operations to refurbishment and utilities management, ensuring a well-rounded and efficient approach. This strategic organization not only streamlines the project’s management but also significantly enhances its potential for success. By leveraging the unique strengths and specialized focus of each component, the project is well-positioned to achieve its objectives with remarkable efficacy.
Leadership: Steyn Fourie whose qualifications are unique, including a B Arch from UFS (South Africa) and an MBA from Kellogg, USA. Steyn is backed backed by respected institutions such as Stanlib, the Development Bank of Southern Africa (DBSA) and New Development Bank (NDB) (Brics) and by a team of professionals and advisors in various fields, including finance, law, and property development.
Financial Model: A significant growth in portfoloi size is envisioned with projections indicating a considerable increase in the number of units and overall property value over the next few years.
Sustainability Goals: Emphasizing environmental, social, and governance factors, including energy efficiency, community engagement, and ethical standards.
Roadmap: The target is the acquisition of a total of 12,000 units by 2026 with a projected portfolio value exceeding R3.6 billion.
Return on Investment (ROI): 25% per annum
The ICRF presents a compelling financial opportunity with promising returns, while simultaneously championing a sustainable and scalable approach to social housing in South Africa. This initiative not only stands as a lucrative investment choice but also holds the potential for substantial social impact, transforming communities and improving lives. By participating, investors can be part of a meaningful solution to housing challenges, contributing to social progress while also benefiting from a solid financial proposition. This dual focus on financial and social returns positions the ICRF as an innovative and impactful investment model in the realm of South African social housing.
