BALTIMORE, MD - Municipal Mortgage & Equity, LLC (MuniMae) announced today that its International Housing Solutions (IHS) affiliate has closed $175 million of capital commitments and participating debt to its South Africa Workforce Housing Fund (S.A. Fund). The S.A. Fund invests in rental and for sale housing for low and moderate-income families in South Africa. Several additional investors are expected to commit further capital to the S.A. Fund within the next several months. Overall, IHS expects the S.A. Fund to total $240 million, creating an estimated 30,000 homes to meet the large and growing demand for housing in South Africa.
Michael L. Falcone, Chief Executive Officer of MuniMae stated, "We are very pleased to have successfully launched this important international development venture. We began IHS in order to bring our expertise in financing affordable housing projects to countries around the world. We now have top-notch teams of investment professionals in South Africa and the UK bringing MuniMae expertise to housing in those markets. Our international activities have become increasingly important as the credit market disruption has impacted fund raising ability for U.S. projects. We believe our success in raising this fund demonstrates the confidence these capital partners have in MuniMae."
The $175 million of capital commitments includes $95 million from a North American pension fund and a U.S. foundation endowment. It also includes up to $80 million committed in participating debt from the U.S. Overseas Private Investment Corporation (OPIC), a U.S. government sponsored agency that supports U.S. private investment in emerging markets, which will help leverage returns for fund investors while spurring economic and housing development in South Africa. OPIC helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy.
MuniMae is widely recognized as a leader in U.S. affordable housing finance, with over $12 billion of affordable housing investments under management for institutional investors.
MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects. The Company also provides investment management and advisory services for institutional investors. Assets under management exceed $20 billion including investments in approximately 3,000 multifamily properties, containing more than 323,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
IHS is a joint venture formed in 2005 with affiliates of Howard Eurocape Limited, a prominent Dublin, Ireland based property investment and development company. IHS provides innovative financial solutions, including debt and equity, to owners and developers of affordable housing projects. It opened its Africa head office in Johannesburg, South Africa in 2007.
Source: Business Wire