London, 17 September 2024 - The ALCB Fund has completed a ZAR 181 million (USD 10 million) investment in the senior and mezzanine notes of Urban Ubomi 2, a mortgage-backed securities (MBS)programme sponsored by TUHF South Africa. This investment is a social-labelled transaction, aligned to the International Capital Market Association (ICMA)standards, and will support TUHF's mission of financing property entrepreneurs who focus on the purchase and refurbishment of affordable rental housing in South Africa's inner-city and in-city areas.

The ALCB Fund’s investment comprises an anchor role in the B, C, and D notes, which underpin the capital structure and provide credit protection to the Class A notes that were largely subscribed by South African institutional investors.  

Through Urban Ubomi 2, TUHF will finance property entrepreneurs dedicated to revitalising inner-city buildings and addressing the growing demand for affordable rental properties across the country. The initiative is a key part of supporting sustainable urban regeneration and fostering economic development through property entrepreneurship.

Brock Hoback, Fund Manager of the ALCB Fund, commented: "We are proud to continue supporting TUHF in its efforts to increase access to affordable housing in South Africa. Our investment in Urban Ubomi 2 reflects our commitment to deepening local capital markets and backing solutions that support inclusive-urban redevelopment and affordable housing.

“Urban Ubomi 2 is TUHF’s third MBS programme and is designed to unlock more funding for property entrepreneurs who are revitalising urban spaces and providing much-needed rental accommodation to low-income households. This aligns with the ALCB Fund’s objectives to support SDGs 10 and 11.”

Paul Jackson, CEO of TUHF, stated: "The partnership with the ALCB Fund is a significant milestone for TUHF, and this investment will allow us to continue financing the development of affordable rental housing in South Africa's cities. We acknowledge the Fund’s confidence in our ability to make a real impact in urban regeneration and housing affordability. The support of the ALCB Fund will help us provide more property entrepreneurs with the tools they need to transform inner-city areas and create quality, affordable rental accommodation. “The ALCB Fund’s investment underscores its mission of fostering the development of local capital markets and supporting impactful initiatives that provide financial solutions to housing on the continent.”