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Old Mutual Karino Lifestyle Estate

Old Mutual provides financial solutions to individuals, small and medium-sized businesses, corporates and institutions across several market segments and geographies in South Africa, the Rest of Africa and certain other emerging markets.

Shared Value Focus:

Old Mutual enables first time home buyers to get a foot on the property ladder through a good investment opportunity in the safest, most desirable of estates in South Africa’s affordable housing sector.

Shared Value Strategy

Background:

Karino Lifestyle Estate is part of a larger affordable housing development made possible by Old Mutual Alternative Investments’ (OMAI) Housing Impact Fund of South Africa (HIFSA). Construction at Karino began in 2009, with completion expected in 2024. Karino offers a lifestyle experience that combines affordability, secure living, attractive architecture and a convenient locality. It also enables first time home buyers to get a foot on the property ladder through a good investment opportunity.

Karino residents enjoy one of the safest, most desirable estates in South Africa’s affordable housing sector. The controlled access provides a reassuring sense of security and the Estate’s on-site amenities include parks, walking trails and a soccer field. With good access to public transport, Karino is conveniently close to the Meridian Karino Private School that offers affordable quality education and to the Crossings Karino shopping centre, which is set to open in October 2019.

Results

Business Results and ROI:

Old Mutual focuses on generating superior investment returns across its range of funds by uncovering attractive investment opportunities often overlooked by others. Old Mutual Alternative’s largest impact fund, HIFSA’s mission is to address South Africa’s affordable housing shortage. OMAI’s investment management capabilities enable it to support projects that provide solid returns to investors over a longer-term investment horizon than typical private equity, backing projects rivals won’t consider. Old Mutual has been working hand in hand with South African partners to deliver affordable housing developments with enhanced environmental quality. HIFSA and its partners, through a shared philosophy, have created cohesive communities where South Africans can thrive.

Social Results and Impact:

In South Africa, we are faced with a large low-income group who do not generally have access to high quality affordable housing. Karino Lifestyle Estate provides residents with the opportunity to live and raise their children in an aesthetically pleasing, safe community – while maintaining affordability. Owning a home enables people to expand their wealth and increase their standards of living. Old Mutual is committed to building safe, inclusive and sustainable housing for our growing population.

Challenges and Lessons Learned:

Housing can be an exceptionally challenging industry that needs strong vision, professional integrity and imaginative solutions. By investing in affordable housing, Old Mutual is bridging the gap between those who have access to government-provided housing and those who use bank financing to purchase their own homes.

 Old Mutual follows a “boots on the ground” approach and work with the developers through the entire process, which creates expertise, knowledge sharing and experience on both sides. We offer investment returns using affordable rental as well as home ownership models.

 Future Growth:

Once Karino’s sister housing development, Summer Rain Private Estate, is completed, there will be 1 654 affordable homes in an array of different sizes, styles and positions for residents to either own or rent – currently there is a rental portfolio of 222 units.