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 for R128m.
The rental housing fund invests in assets that provide access to safe, quality and affordable housing to underserved households and communities in SA.
“This transaction enables us to make a positive social impact and achieve targeted investment returns,” said Tebogo Mokgata, OMAI Impact Investing executive member.
Mokgata said that by deploying investors’ capital and bringing together the capabilities of the investment sector and affordable housing developers, OMAI can strengthen and help communities thrive. “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.”
With SA estimated to have a housing shortage of 3.7-million, the fund looks for opportunities to contribute to addressing this problem.
The two-bedroom apartments are part of the residential estate Stellendale Village situated in Kuils River, Cape Town. Rentals start from R7,000 a month and fall within the affordable rentals market nationally, making the development well placed within the middle-income segment.
The deal between the FSC Fund and Asrin will be held as a long-term investment in the fund’s rental housing portfolio, Omrent. “We continue to be focused on finding quality assets while being aligned with OMAI’s transformation and green building objectives,” said Mokgata.
She said the investment aligns with OMAI’s sustainability goals and will be built in line with the Green Building Council of SA’s EDGE standards, ensuring carbon emission reductions, water saving and lower utility costs.
Asrin is a B-BBEE level 1, 100% black-owned and black-managed company which has delivered more than 7,000 residential units. It has a significant pipeline of developments in the Cape Peninsula area.
Asrin CEO Ishmail Essa said the company is committed to uplifting and empowering historically disadvantaged individuals and communities. “Our partnership with OMAI will ensure that more South Africans will be able to improve their standard of living through affordable, quality housing options,” said Essa.
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