Urbanis corporate presentation may 2012

“AVisionforinclusivehousinginAfrica”

1. LowincomehousingGap2. Vision/Mission3. Urbanissolution4. BusinessModel5. ServiceOffering6. ManagementTeam7. OperatingModel8. Portfolio/TrackRecord

Agenda

Africa’sexplosivedemographicgrowth

  The African population is growingatarateof2.4%ayear.

  Itisestimatedthatby2030,50%ofAfricanswillliveincities;

  The African workforce will reach1.1 billion people by 2040 ‐ thelargestintheworld(McKinsey);

  Andby2050,Africawillbehometo1.9Billionpeople.

0

200

400

600

800

1,000

1,200

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

Africa

India

China

SoutheastAsia

La:nAmerica

Europe

NorthAmerica

Japan

Africa’sworkforcewillbecometheworld’slargestby2040Sizeoftheworking‐agepopulaGonMillion

Africa’sisfacinganurbanchallenge

  By2040Africaisexpectedtobethe2nd most urbanized continent afterChina.

  At current urbanization rates, anadditional 14million housing unitsper annum are needed in order toaccommodate the increasing urbandemand.

  62% of the populations living inA f r i ca’ s c i t i e s ( 32 mi l l i onhouseholds) l ive in informalhousing where basic services arepoorornon‐existent.

Africafacesalargegapinlowincomehousing

Region Demand Supply

Sub‐SaharanAfrica

 32millionhouseholdsinSub‐SaharanAfricaareconsideredinadequate.

 Undercurrenturbanisa:onrates,anaddi:onal14millionhousingunitsperannumarerequired

 308millionpeople;191millionofwhomliveininadequatehousing.

Kenya  60%ofhouseholdsareconsidered‘inadequate’housingandarelocatedinslums.

 150,000unitsarerequiredperyear

 Lessthan30,000unitssuppliedperyear Theannualdeficitisthusmorethan120,000

housingunitsperyear

Ghana  Ghana’sannualdemandforhousingcurrentlystandsat120,000housingunitsperannum

 Currenthousingsupplyprovides42,000unitsperannumwhichisonly35%ofthedemand

Nigeria  33.6millionNigerianslivinginurbanareas(46%oftheurbanpopula:on)areconsideredtobelivingininadequatehousing

 Theannualdeficitis16millionunits 720,000unitsneedtobecreatedannuallyto

meetthedemand Currentsupplyishowevermee:ngonly3%of

thisdemand

Tanzania  80%oftheen:repopula:onislivinginunplanned,informalhousing.

 Thehousingdeficitinurbanareasises:matedat1.2millionunits.

TheresponsetotheAfricanurbanexplosionmust not be, more unplanned and poorlyserviceddevelopments.Africa should learn from the mistakes ofmany European and American cites thatallowedthedevelopmentofsocialenclaves,which became the source of insecurity,social tension and frustration for the lowincomepopulation.The demand for housing should be metthrough the development of suburbanmixed income communities that offer ahealthy social environment, and economicopportunities.

Vision for African housing

ThevisionofUrbanisAfricaistoenabletheordinaryAfricans,mostofwhomareactivein the informal sector, to acquire a housewithin their Tinancialmeansandraise theirfami l i e s in a sa fe , c l ean , hea l thyenvironment with access to world classeducationandeconomicopportunities.Insodoing, Urbanis achieves social impact,environmentalandTinancialreturns.

Urbanisaimstoimplementitsmodelacrossthe African continent, and will encouragemanydeveloperstoemulateitsmodel.

The mission of Urbanis Africa is to enablethe majority of Africans living in cities tohave an opportunity to own a house,workand raise a family, in a clean and family‐friendlyenvironment.

TheCompany’sobjectivesareasfollows:

 Deve l op p l anned m i xed i n c omecommunities across the continent thatimplement state of the art, low carbonfootprinttechnology

Mission and Objectives

  Provide a ‘one‐stop shop’ approach todelivering housing solutions, by buildingpartnerships with all the players in thevalue chain, including the commercialbanks.

  Design inclusive solutions to unlockmortgage Tinancing for informal sectorborrowersand;

  Deliver affordable housing within aproTitablebusinessmodel.

Urbanis Africa contributes to resolvingthe problem of affordable housing inAfricausingthefollowingtools;

 Cro s s s ub s i d i z a t i on : A c h i eveaffordability through mixed incomehousing communities, and apply crosssubsidization between middle and lowincomehousingunits. Collaboration: Create a network ofpartners around each project includingdesigners,contractors,bankers, Tinanciersetc

UrbanisSolution

  Rapid construction: Accelerate thespeed of construction through theuseofpre‐castconcrete.

  Low cost of ownership: Reducerecurring cost to owner by usinggreen technology ( Waste recycling,Solarenergy,rainwaterstorageetc..)

  Buildingattheperiphery:Urbanisachieves affordability by buildingintegrated housing communitieswith Residential, Economic andSocial amenities at the periphery oflargeurbancenters.

AchievingSocioEconomicValue

UrbanisAfricaaimstomaximizesocioeconomicvalue….

 AverageprojectIRRof25% MinimumProjectprofitmarginof20%. Averagepaybackperiod,4years.

FinancialReturn

 CreatelocalEmployment Providelowincomehousing CreateEconomicopportuni:es Providebecereduca:on

SocialReturn

RiskManagement

EnvironmentalReturns

• EconomicBenefitforInvestors.• EconomicBenefitsforhomebuyers(affordability)• EconomicBenefitsforthecommunity• SocialBenefitfortheresidents• SocialBenefitsforthecommunity

SocioEconomicValue

SocioEconomicValueProposi:on

 CreatelocalEmployment Providelowincomehousing CreateEconomicopportuni:es Providebecereduca:on

 SolarPoweredpublicareas Recycledwastewater Rainwatercapture RecycledSolidWaste 40%ofpropertyreservedforgreenspaces.

Business Model

UrbanisAfrica

ArchitecturalDesign

FinancialStructuring

ProjectManagement

SupplyChainManagement

EquityInvestment

Opera:onalManagement

Construc:onTechnology

 Urbanis’Africaisarealestatedeveloperspecialized in bottom‐of‐the‐pyramidresidentialandcommercialprojects.

 Urbanis sets up a Special PurposeVehicle(SPV)foreachprojectitinitiatesand brings to each project a differentgroupof investors and lenderswhoareexposedexclusivelytoasingleproject.

 As adeveloper,Urbanis takes an equityparticipation in its projects. It isremunerated through developer's feesandsweatequity.

BusinessModel(cont)_

EquityInvestorQuasi–EquityInvestors

Financiers(Debt)

URBANIS

SPV(CountrySpeci]ic)

ContractorLocalInvestor

Government

MortgageBanks

MFI’s

HomeBuyer

Thecompanybuildsalliancesandpartnershipsacrossthevaluechain,hencecreatingamicrocosmthataddressesthehousingproblemholistically.

Service Offering

PROJECT

ORIGINATION

FEASIBILITYSTUDY

MASTERPLANNING

ARCHITECTURAL&TECHNICAL

DESIGN

FINANCIALSTRTUCTURING

PROJECTFUNDING

PROJECTMANAGEMENT

PROPERTYMANAGEMENT

 Urbanis’AfricaProvidesservicesthatspanacrosstheentiredevelopmentvaluechain.

 Thecompanymanagesprojectsfrominceptiontopostcompletionmanagement.

 UrbanisAfricaprovidesthemanagementservicesthroughsubsidiariesthatitestablishesincountrieswheretheprojectsarelocated.

IntegratedServiceOffering

DevelopmentManagement FinancialAdvisory Construc:on PropertyManagement

UrbanisAfrica

  ProjectConceptualDesign

  Architecturalandtechnicaldesign

  Projectdevelopment

  ProjectExecu:onandManagement

  ProjectFinancialfeasibility

  FinancialModeling

  Financialrestructuring  SourcingofEquityand

Debtfunding

  FinancialManagementofprojects

  Rapidconstruc:onbasedonprecastconcreteandformwork.

  EstateManagement

  CommercialAssetsManagement

  U:lityandWasterManagement

  CommunityProjects

Urbanisprovidesandintegratedsuiteofservicesthatenablesthecompanytomanagebottom‐of‐the‐pyramidresidentialandcommercialprojectfrominceptiontopostdeliveryacrossAfrica.

CompetentManagementTeam

WaganeDiouf,ChiefExecutiveOf]icer:• FounderandCEOofUrbanisAfrica• 12YearsexperienceinImpactInvestingandPrivateEquity• BachelorinComputerSciencefromESGI(Paris)• BachelorinFinancefromESG(Paris)• ExecutiveMBAfromtheGeorgiaInstituteofTechnology

JakoyoPatrickAiro,ChiefOperatingOf]icer:• ChiefOperatingOfTicerofUrbanisAfrica• 30 Years experience in project Tinance, large scaleprojectmanagement,realestateandmanufacturing.• MBA from University of Nairobi,Bachelor of fromNewcastleUniversity,UK

FrancisOtieno,HeadofPropertyManagement• PropertyManager• 20 years experience in all aspects of propertymanagementandvaluation.• B.A.LandEconomics (Hons)degree fromUniversityofNairobi

JacobOrioki,ChiefAccountant• ResponsibleforgroupaccountingandFinance• 27 years practical experience in senior levelManagementinAccountingandFinancialAdministration• CertiTiedPublicAccountantofKenya(CPAK)andholdsaB.Comm degree in Accounting from the University ofNairobi.

CatherineWarega,HeadofSalesandMarketing• Responsibleforgroupsalesandmarketing• 10yearsexperienceinresidentialandcommercialrealestateinKenya.•  Post Graduate degree in Real Estate Agency andPropertyManagement,UniversityofNairobi

JeremyChildress,FinancialAnalyst• Tinancialanalysis&structuring•  progressive experience in Tinancial analysis &structuring• University of Southern California with degrees inEconomicsandCorporateFinance

FranciscaWanbua,CorporateLawyer• GroupCorporateLegalOfTicer• AdvocateoftheHighCourt• Extensive litigation and Corporate law practice in theTieldofconveyancy

Governance/OwnershipStructure

UrbanisSweden(Stockholm)

UrbanisAfrica(Nairobi)

JamiiBoraMakao(SPV)

KenaniHousingCo.(SPV)

UrbanisBuildingTechnology

Execu:veManagement

EquityEquity

Equity+ManagementContract

Managementcontract Equity Equity

UrbanisCleanEnergySolu:ons

OperatingCompany:JamiiBoraMakao.

Location: Kaputiei within Kisaju Town offNamangaRoad,60KmsfromNairobiCBD.

Description: Mixed income communitytargeting 2000 residential units and 2000and1164commercialunits.

Price range: KShs. 1.2million ($14,000) toKShs.5million($58,000)

Additional Amenities: Police, Clinic,Primaryandsecondaryschools,

TotalprojectCost:KShs.5Billion

Stage: To date780 houseshave been builtandsold.

Portfolio­JamiiBoraMakao

Portfolio–KenaniHousingCompany

Operating Company: Kenani HousingCompanyLtd.

Location: Lukenya, nearAthi River, located 37kilometerssoutheastofNairobiCBD,ona230acresplotofland.

Description: Mixed income communitytargeting 2,400 residential units ( apartmentsandMaisonettes)and1,000commercialunitsinPhaseI.

Price range: KShs. 1.4 million ($16,000) toKShs.7.0million($82,000)

AdditionalAmenities: Police, Clinic, Primaryandsecondaryschools,

TotalprojectCost:KShs.l6Billion

Stage:FinancialclosingprojectedinApril2011.GroundbreakingJune2011.

UrbanisAfricaLimited.5thFloor,ContrustHouseMoiAvenueP.O.Box57618‐00200NAIROBI

Tel:Email:info@urbanisafrica.com

www.urbanisafrica.com