Pan-African housing development financier Shelter Afrique has listed its strategies for Nigeria aimed at increasing housing supply in the country.
Responding to enquiries by Africa Housing News, the acting Managing Director of Shelter Afrique, Kingsley Muwowo said that its strategies involves several areas that can be subscribed to by Nigerian developers, banks, and primary mortgage lenders.
Shelter Afrique said that it engages in direct lending at noted that using its direct lending at competitive rates to eligible developers adding that it can provide facilities for up to $15m for a tenor of 7 years and where larger facilities are required, it has the capacity to syndicate financing with other lenders.
The housing finance and development institution established by African governments to address the need for a sustainable housing delivery system said stated that using its provision of Lines of Credit to local financial institutions, it gives necessary funding for mortgages to enable off-takers to purchase already constructed housing units.
The Housing Financier also said it gives Trade Finance Facilities to contractors and developers to finance the acquisition of equipment and bulk purchase of materials etc. This facility can often be helpful in assisting contractors and developers in hedging against inflation and resulting cost variations.
Another essential part of Shelter Afrique mandate is to support and facilitate training and capacity building in housing development across the continent which it does through Training and Capacity Building.
The training and capacity-building initiatives are delivered through the Shelter Afrique Center of Excellence.
So far, the group has given out a corporate loans of $4m aimed at providing 343 housing units, another N8bn corporate loan aimed at providing 1,171 houses unit.
It has also financed another project with N10 billion that is to provide 306 housing units. Three other corporate loans of N10 billion, N2.49 bn and N1.8bn aimed at providing 321, 68 and 341 housing units respectively.
Shelter Afrique says it has also invested N816m in Real Estate Investment Trust and has a $9 million line of credit mortgage scheme.