Housing in Southern Africa July 2016

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Returns for
TUHF – in the
10
TUHF is unashamedly deter-
mined to make a profit and
meet shareholders’ expecta-
tions, while helping others to create
well-run businesses. With initial fund-
ing fromtheNHFC, it opened its doors
for business 13 years ago, and has a
proven track record of commercial
viability and driving social change in
the inner city while simultaneously
delivering returns for investors.
Paul Jackson is incisive, down to
earth and engaging. His mantra, bor-
rowed from a colleague in Chicago,
USA, is ‘Bringme a transaction’, which
he explains reminds the team that,
“we are not in the business of dreams
– it’s about transactions”.
The establishment of TUHF has
reaped huge dividends for its share-
holders and has unlocked a wealth
of opportunities for ordinary people
– who do extraordinary things.
The Inner City Housing Upgrading
Trust (ICHUT) had been involved in
lending in the inner city since 1993.
In 2002, a joint venture between
the NHFC, ICHUT and Nurcha was
proposed. With financial muscle and
the foresight of the NHFC, together
with its Joint Venture partners, TUHF
was officially launched on 1st June
2003. The initial Board comprised
Samson Moraba as its chairperson
and Luthando Vutula from the NHFC.
The newly named company, with its
new specialised commercial property
TUHF Ltd’s modern
offices in the heart
of Braamfontein
embody its corporate
culture. Upbeat
slogans reflect a
‘can do’ attitude
while a pinball
machine, couches
and delicious coffee
offer potential
clients a welcoming
environment in
which to relax before
doing business. CEO
and co-founder, Paul
Jackson, shares
TUHF’s journey with
the NHFC and recalls
the people involved
from the beginning
of its meteoric rise.
finance mandate, had R11 million
from ICHUT and received both a
R10 million interest free loan and a
R50 million commercial loan from
NHFC. With R71million in total assets,
it opened its doors from its offices in
Braamfontein.
“The NHFC played a catalytic role
and showed lots of foresight in form-
ing TUHF. It has not only financed us
but has also featured prominently
in our success. The NHFC offers the
best financial package for housing
development in the country. It does
have higher transaction costs but if
you can get around those, it is a good
partner to have on board. The best
thing about working with the NHFC
is that it is reasonable, supportive,
constructive, and does not try to run
your business,” says Jackson.
With the backing of Moraba, Vu-
tula and Morgan Pillay from the
NHFC, Jill Strelitz fromNurcha, Brian
Moholo from SHF, and Cas Coovadia
and Taffy Adler from ICHUT, TUHF
was the only commercial property
financing company doing business in
the inner city. Jackson recalls that in
2002/3, the inner city was on a mas-
sive decline and it was crime deluxe.
Commercial banks hadn’t invested
in the city in the previous decade
and did not do so for the next seven
years. “TUHF specialises in niche low
income housing –we only finance low
income rental housing and we only