A new property development fund called Matutungu Property Fund (MPF) was launched last week.
The new entrant actively seeks to play an intermediary role in the fundraising and financing of property projects promoted by developers, entrepreneurs, individuals and various institutions that own land and want to develop housing. Matutungu, which means ‘we are building’ in Otjiherero, aims to collaborate with architects, engineers, town planners and other key professionals in the value chain of property development.
According to the managing director of Matutungu Jerry Muadinohamba, it is known that both new and existing players in the real estate space have difficulties in preparing project and business plans and accessing finance. “It is against this background that the fund would like to start off by inviting those that are faced with such constraints to explore our services and possible partnerships,” said Muadinohamba.
He added that the intention is to create and grow property entrepreneurs that can deliver affordable, low and middle-income residential and mix-use spaces.
“The ultimate goal is to address the demographics of property ownership and enabling an effective participation of Namibians in the real economy,” Muadinohamba explained.
At last, week’s launch, the MD stated the fund will develop an extensive pipeline of projects and present those to its developments advisory board, with the consent and agreement of the interested developers. Thereafter, the fund will determine the collaboration framework and the regulatory requirements to guide property development finance. Further details on the fund’s structure, business model and strategy are expected to be announced in due course.
Said Muadinohamba: “It is an initiative that would focus on property development finance, with the primary purpose of enhancing access to finance in the property investment market. The prevailing housing crisis is a major concern and has been a lingering developmental problem. The demand for housing and more specifically affordable housing and serviced land in various towns and settlements has exhausted the current supply. Furthermore, the level of under supply of serviced land and housing developments is exacerbated by a lack of suitable and affordable financing in order to implement bulk services and the required infrastructure.”
He added that in terms of experience, the Muadinohamba Family enterprise has undertaken various property investments over the past 10 years in towns such as Ongwediva, Walvis Bay, Nkurenkuru, Katima Mulilo, Gobabis and Windhoek. Among the future planned projects are Eenhana, Tsumeb, Henties Bay and Karibib.
“The past 10 years have enabled us to understand the challenges faced by property investors and we bring that experience and track record to the table – with being nimble and intentional,” Muadinohamba continued.
The MPF will also seek partnerships with commercial banks, development finance institutions, local authorities and civil society organisations in closing gaps in housing delivery.