Shelter Afrique signs USD1.5bn housing deal with South Sudan
Shelter Afrique has signed a Memorandum of Understanding (MOU) with Juba-based real estate firm, Triangle Real Estate for the construction of 26,000 housing units for South Sudan People’s Defence Forces at a cost of $1.5 billion.
The pan-African housing development financier Shelter Afrique says the military housing project will be developed through a public-private-partnership special purpose vehicle, Kenyan media reported.
The MOU was signed in Nairobi by Shelter Afrique Chief Executive Officer Andrew Chimphondah and Triangle Real Estate Chief Executive Officer Amb. Arop Deng Kuol, on behalf of South Sudan's Ministry of Finance and Planning on Monday.
“We have been mandated by the Ministry of Finance and Planning to source funds for the construction and completion of a defense housing project on behalf of the Government of South Sudan under the Peace Through Development programme initiated by President Salva Kiir in 2018,” Amb. Kuol said.
Amb. Kuol noted that the signing of the MOU was critical in addressing the housing crisis in South Sudan, which has been exacerbated by years of conflicts.
“The housing crisis in South Sudan is dire. In fact, we are starting from scratch, the reason this memorandum of understanding we’ve signed with Shelter Afrique is very important for us and is proof that the provision of affordable housing is central to the agenda of the government of South Sudan, not just for the Forces but for the entire population,” said Amb. Kuol.
Chimphondah said the signing of the MOU with Triangle Real Estate highlights Shelter Afrique’s catalytic role in the provision of affordable housing finance across Africa.
“Our vision is to provide affordable housing for all Africans – including South Sudan. We are proud to be part of this partnership and we look forward to being the pre-eminent provider of financial, advisory, and research solutions geared towards solving the housing crisis in South Sudan which has a shortage of 4 million units,” Chimphondah said.
The Project scope includes the development of 148 housing blocks of 160 housing units each at New Site, Giada, J-3 Presidential Guards Apartments, and at New Bonga.
Under the agreement, Triangle Real Estate will act as the developer and contractor of the project in conjunction with various consultants.
Shelter Afrique, on the other hand, will provide catalytic funding as well as act as the lead arranger to assist in raising additional financing through the syndication of other Developmental Financial Institutions as applicable.
Shelter Afrique is a pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.