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July 2015
News
T
he former CEO is a housing
activist who has won a number
of international awards for his
work in the social housing sector.
As head of government’s land
acquiring agency for the Depart-
ment of Human Settlements and
under his leadership, the agency
has successfully delivered far above
its acquisition targets and he will be
sorely missed.
Minister of Human Settlements,
Lindiwe Sisulu says, “He will fortu-
nately still be part of the housing
environment and we will count on
his support when he has time for us.
Through his energy, focus, experi-
ence and ability to adapt to new
challenges, Taffy has shaped the HDA
into a highly effective and efficient
organisation, which is an essential
part of the state’s human settlements
efforts.
As we bid farewell to Taffy, we
do so knowing that he has played
a pivotal role, not only in shaping
and leading the HDA since its forma-
tion, but in broader areas such as
the turnaround of the N2 Gateway,
the informal settlements upgrade
programme and the development of
the Master Spatial Plan.”
Adler has had a direct and indi-
rect impact across the entire human
settlements value chain and, says
Sisulu, “We are sure this will continue
to be the case in his new role. We
are very grateful for all he has done
Adler leaves HDA
Taffy Adler, one of the most seasoned CEOs in the housing sector has left
theHousing Development Agency.
during his time with us and we wish
him well.”
Taking over as Acting CEO is the
Department of Human Settlements
Director General, Thabane Zulu, who
is very familiar with the work of the
agency and what it is expected to
deliver in the current MTSF period.
He will bring stability and continu-
ity during this bridging phase while
the new CEO appointment is being
finalised.
■
I
nternational Housing Solutions
has an impressive track record in
the rental and affordable housing
market in South Africawith its second
fund successfully raising capital of
US$180 million to date. The global
equity fund has begun approving
investment opportunities in South
Africa.
The first investment that has been
approved is Ravenswood, a 188
unit rental development in Johan-
nesburg. According to international
Managing Partner, Soula Proxenos of
International Housing Solutions, the
development will bemanaged by the
company for a period of four years.
The planned exit strategy is to release
a limited number of units for sale
over a 31 month period. A number
of alternative exits may all present,
such as the sale of a stabilisedmulti-
family project, or to an institutional
buyer or a REIT.
One of the equity provider’s first
fund’s projects was The Mews, a 466
unit middle income development in
Durban, KwaZulu-Natal. Proxenos
says that the sale of the final 24
units is expected to be complete by
August 2015. This project is expected
to provide a return of 27% IRR, on In-
ternational Housing Solutions R77,3
million (approximately US$7 million
at the time of investment). The in-
vestment was closed inMarch 2012.
■
IHS US$ 180 million
Soula Proxenos
T
he Department of Human
Settlements (DOHS) Minister,
Lindiwe Sisulu says her depart-
ment will review its tender system to
make it work better. TheMinister said
that it was necessary for her depart-
ment to review the tender systems
adding that “It is one of our biggest
headaches in the Human Settlements
environment.” The review will focus
on pre-qualifying contractors based
on their skills and capacity rather
than price. This comes as the depart-
ment aims to build 1,5million houses
and housing opportunities to accom-
modate a growing housing backlog.
The Minister said her department
was exploring partnerships to en-
sure that this target is met. She said
that while government will strive to
deliver quality houses - citizens also
have a role to play to ensure that the
houses they stay in do not fall apart.
“A beneficiary of a house has a re-
sponsibility to fix a broken window or
door latch when it is broken. We are
embarking on a nationwide consumer
education to empower our people to
understand the value of the houses
they own, the importance of caring
for it andmost importantly, why they
must not easily sell it to address short
term challenges. This will be done in
partnership with the Estate Affairs
Agency Board.”
■
DOHS reviews tender system