Opportunity

Opportunity

INVESTING IN THE OPPORTUNITY OF CLIMATE-SMART AFFORDABLE HOUSING AND CREATING RESILIENT CITIES.

Climate-smart affordable housing is an investable opportunity pioneering sustainable investment, delivering long-term sustainable financial return and helps to address some of the most fundamental challenges facing the world over the next 30 years. Environmental, social and governance (ESG) factors are a driving part of our offering and provide sustainable investment opportunities impacting 16 out of the 17 United Nations Sustainable Development Goals.

Opportunity

High demand, high-quality product

Reall has strategically positioned itself to be able to manage debt financing to bring our mission to scale. Reall has developed an ESG investment opportunity and through the management of a dedicated Special Purpose Vehicle (SPV) is seeking investment for the construction of climate-smart affordable homes in our primary markets of Pakistan, India, Nigeria, and Kenya and beyond.

Investments are supported with a first loss layer already raised by Reall and senior debt has the option to be assured through a Sovereign Guarantee fund.

Opportunity

Established, credible partners

Reall has built and continues to build an established network of credible partners in the countries where it operates. Reall’s proposed SPV operational model is to provide secured development loans to established partners to continue to demonstrate the commercial viability of climate-smart affordable homes.

Examples of investable projects

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* Recognised by Centre for Affordable Housing Finance in 2019
1 Sanand, India: Image of Similar Project

 

The SPV will provide three to four-year development loans to partners, these loans will be used to fund the development of affordable housing projects which will be overseen and managed by Reall. Once constructed the housing units will be sold and the loans repaid.

Financial Model

Reall has worked with its investment advisors, Fount, to produce a financial model of Reall’s investment proposal. The financial model can be shared with potential investors on request. This section summarises the key inputs and assumptions of the financial model.

Capital structure illustration

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For this investment opportunity Reall is focusing on the four markets of India, Pakistan, Kenya and Nigeria. Reall has been working in these markets for a number of years and has established a strong network of development partners, has piloted projects and is ready to take investment to scale.

Focus on Four markets

World-graph

Reall has a rigorously assessed portfolio of partners ready to expand. Our due diligence systems are of international standard and would provide investors with the confidence to move quickly to invest in targeting a range of catalytic opportunities across Pakistan, India, Nigeria and Kenya. Such investment will also prepare the ground to stimulate the provision of private capital for affordable housing as emerging markets recover from the impact of Covid-19.

107000
People with improved water
795000
People with improved sanitation
107000
total people housed

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Mewahib Mohamed
Director of Programme and Business Development

Mewahib Mohamed