Urban Kraal
Housing Fund 1
Urban Kraal Housing Fund I Partnership is an en commandite partnership incorporated in the Republic of South Africa. The Fund will constitute as a Black Private Equity Fund.
Nature of Fund: Social Impact Infrastructure Fund – real assets
Fund objective
The Fund’s objective is to make investments in immovable property and related assets in South Africa in order to generate attractive risk-adjusted returns, and to achieve long term capital appreciation.
Investment focus
The Fund will create value through the investment and development of affordable housing and student accommodation real assets, including investing in opportunistic commercial real assets.
Fund manager
Urban Kraal Capital (Pty) Ltd is a private company incorporated in accordance with the laws of South Africa (Registration number 2019/389656/07).
UKC will act as the Fund’s discretionary investment manager and provide the Fund with certain investment management, advisory and administrative services as detailed in the Limited Partnership Agreement and Management Agreement.
Urban Kraal Capital (‘Fund Manager”) is a licensed FSP with Category II license (FSP number 52790).
Development manager
Urban Kraal Properties (Pty) Ltd (Registration number 2006/015373/07) a private company incorporated in accordance with laws of South Africa, is a property development company that was founded and established in 2010 by the lead promoter of Urban Kraal Capital. Urban Kraal Properties will be the Fund’s implementing agent (“Development Manager”) providing development management services exclusively to the Fund. In house development capability is a fund policy to effectively manage key delivery risk.
General Partner
Urban Kraal Housing Fund I (Pty) Ltd (Registration number 2019/387702/02) is a private company incorporated in accordance with the laws of South Africa.
Fund Facts
Target Size
R750 million
The Fund is seeking to raise a total of ZAR 750 million [circa US $50 million] in equity capital.
Commited Capital
R210 million
ZAR 210 million [circa US $14 million] has been secured as first close.
Target Returns
14–16%
The Fund’s blended overall targeted returns (gross) across all property sub-sectors 14%-16% internal rate of return (IRR).
Preferred Returns
10%
An annual rate of return equal to 10% compounded annually in arrears.
Investment Period
5 years
The period commencing on the first closing date and terminating on the earlier of the fifth anniversary of the first close date (5 years), or the date determined by the General Partner if on such date, 75% of total commitment has been drawn down and/or reserved.
Fund Term
10 years
Initial term of 10 years from first close with option to extend for a maximum of two consecutive years (with approval of Advisory Board) to allow for disposal or maturity of any remaining investments.
Minimum Investment
R50 million
ZAR 50 million [circa US$ 3million]
Leverage
55%
Leverage to take place at portfolio company (SPV) or asset level, limited to a maximum 55% of asset value.