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According to bank provided information, IFC is considering an investment package of up to ZAR300 million (~US$18 million) in a special purpose vehicle (“Pula SPV”), managed by Live Easy Property Management (Pty) Ltd (“Live Easy” or “the Company”), a South African property development and management company specializing in affordable urban rental housing (the “Project”).
The Company’s offering is based on a “nano-unit” concept — compact, self-contained apartments with a kitchenette and bathroom. Live Easy’s model involves acquisition of underutilized or distressed office buildings and converting them into residential rental assets, typically complemented by amenities such as laundromats, gyms, common areas, and Wi-Fi.
To date, Live Easy has delivered 5,516 nano units and has additional units currently under development. These projects have been financed through a series of standalone SPVs backed by South African institutional investors, with Live Easy serving as investment and property manager, whilst its parent company, Twentyfive 15 (Pty) Ltd (“Twentyfive”), provides development management services.
Proceeds will be used by the Pula SPV to acquire and refurbish/convert properties into additional affordable nano rental units and to fund related project costs, targeting low- and middle-income households primarily in Johannesburg and Pretoria.
The total project cost is estimated at ZAR3.2 billion (~US$194 million) and will be financed through a combination of equity, quasi-equity and debt.
IFC’s proposed financing package will comprise (i) a quasi-equity investment via a ZAR175 million preference note (~US$11 million) and (ii) an equity investment of ZAR125 million (~US$7 million) in common shares of Pula SPV, for IFC’s own account.
Live Easy is a wholly owned subsidiary of Twentyfive, which is owned 60% by Mr. Jeffrey Froom and 40% by Mr. James Huff (together, the “Sponsors”) through their respective family trust vehicles.
The shareholders of the Project company (the Pula SPV) are expected to include Twentyfive (4.5%), Kagiso Capital (24%)—an existing institutional investor in a prior SPV—IFC (up to 20%), and other institutional investors (51.5%). These shareholdings are indicative, as fundraising for the Pula SPV is ongoing; however, IFC’s common equity participation will be capped at 20%.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| - | - | - | - | Live Easy Property Management (Pty) Ltd | Parent Company | - |
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