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decided to build up a rental portfolio
insteadof selling off the golden goose.
The NHFC provided Afhco with out-
standing levels of funding at attrac-
tive interest rates that allowed us to
do some very big projects.”
NHFC’s role was to entice the
private sector back into the city and
to change perceptions in the market
place about crime and degradation
in the city. “It took a long time before
the banks began funding the inner
city. The NHFC got themarket moving
and lot of developers have followed in
our footsteps and borrowed from the
state entity.” NHFC was always open
for business, obviously they would go
through their feasibility and business
models but we built up a good track
record with them and never missed a
payment. That develops levels of trust
as well. What changed to a certain
extent was the implementation of
the Financial Sector Charter as banks
had to score points investing in the
redevelopment of the country. This
precipitated Old Mutual to acquire
50% of Afhco over a decade ago.
With a 3% to 4% vacancy rate over
a 20 year history, Renney says, “In
reality, where is the risk?” He says that
even today the commercial banks
are still backing the bigger players
rather than new developers coming
into the market. Ahfco was sold for
R1,4 billion to SA Corporate on 1
st
July
2014. “It was a cultural fit,” says Ren-
ney. SA Corporate CEO, Rory Mackie
oversees a R13 billion portfolio. Afhco
is now a subsidiary of SA Corporate
Property Reit. This has enabled the
Plit brothers to accelerate the roll
out of affordable housing for the
middle income market. With three
year contracts and a one year profit
warranty, which they have already
S
imon recalls in 2004, when he
approached the owner of the
Yeoville block of flats in which
he lived, asking if he could buy his
apartment. “The landlord said that
he wanted to sell the entire building
for R350 000. I knew it was a fair price
but I had no money or savings.”
Mkhize had seen the TUHF signs on
other buildings financed in the area
and a friend told him to go see Nano
at TUHF in Braamfontein. A meeting
with Nano yielded him an Intuthuko
loan, andwithin a short space of time
he was signing an offer to purchase
Mabel Court on Natal Street.
The tenants refused to leave and
not even a High Court order made
them budge. The Sheriff of the Court
seemed unwilling to enforce the evic-
tion order unless hewas paidR10 000.
Simon arranged for a private security
firm to do the job. The Sheriff then
took exception, insisting that it was
his job to carry out court-ordered
evictions, and promptly moved the
tenants back into Mabel Court. TUHF
advanced Simon the money, he paid
the SheriffR10 000 and as the eviction
proceedings got underway, it started
to rain. “They were on the street and
were getting wet, so I told them to
Case study Simon Mkhize
Simon Mkhize does not mince his words when he talks about TUHF:
“Theymean everything tome. I ama newman because of TUHF,” says
the 53-year-old entrepreneur.
put their belongings in my garage,”
says the soft-hearted Simon. “What
could I do; these aremy fellowhuman
beings?” The old tenants eventually
left and he started his new business.
In 2013, Simon was charging ten-
ants R1 800 per person per month,
including utilities. Mabel Court’s
two, two-bedroom apartments that
typically sleep three people and
the four, one-bedroom apartments
accommodate two people. After
working at a hardware andpaint shop
as a clerk for more than 25 years, Si-
mon is today a full-time entrepreneur.
He bought two semi-detached prop-
erties near Mabel Court (also financed
by TUHF, at a total cost of R800 000)
and also runs a small driving school.
Simon expects to pay off his original
loan to TUHF shortly and is consider-
ing other purchases in Yeoville.
Simon Mkhize
exceeded, Renney and Wayne are set
to deliver another 800 apartments in
the conversion of the 60 000m² Jeppe
Post Office, in downtown Joburg.
The project of scale will compete
with Afhco’s flagship development at
120 End Street totalling 927 apart-
ments and shopping precinct. The
brothers are relentless and continue
to find new business opportunities
and development acquisitions. “We
do not borrow money anymore but
as loyal customers, we appreciate
the growth in our business due to the
NHFC,” concludes Renney.
Renney and
Wayne Plit