Client Pack Where others see decline, we see investment opportunities - 086 000 TUHF (8843) www.tuhf.co.za
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Client Pack
Where others see decline, we see investment opportunities
086 000 TUHF (8843) • www.tuhf.co.zaOur Areas of Finance
Gauteng Western Cape
• Arcadia • Kenilworth • Westdene • Brooklyn • Woodstock
• Auckland Park • Kensington • Witpoortjie • Observatory • Voortrekker Corridor
• Bellevue • Krugersdorp • Yeoville • Rugby from Koeberg to
• Bellevue East • La Rochelle • Salt River Bellville
• Benoni CBD • Langlaagte • Ysterplaat
• Berea • Lorentzville
• Bertrams • Marshall Town
KwaZulu-Natal
• Bezuidenhout Valley • Melville
• Boksburg North • New Doornfontein • Albert Park • Warwick Avenue Free State
• Braamfontein • Newtown • Bluff • Wentworth
• Brakpan CBD • North Doornfontein • Durban • Overport • Navalsig
• Brixton • Orange Grove – Clairwood • Pietermaritzburg • Bloemfontein Central
• City and Suburban • Pretoria CBD – Durban Central – Pietermaritzburg • Oranjesig
• Doornfontein • Pretoria West – Jacobs Central
• Fairview • Primrose – Montclair • Pinetown Central
• Florida CBD • Randburg CBD – Seaview • Umbilo
• Forest Hill • Roodepoort
• Germiston • Rosettenville
• Hatfield • Rouxville
Eastern Cape
• Highlands • Selby
• Highlands North • Silverton CBD
• Hillbrow • Springs CBD • Central • Richmond Hill
• Johannesburg CBD • Sunnyside • Korsten • Sidwell
• Joubert Park • Troyeville • North End • Uitenhage
• Judiths Paarl • Turf Club • Port Elizabeth • East London Central
• Kempton Park CBD • Turffontein CentralWho we are
We are a specialised commercial property financing company that
finances property investors exclusively in inner cities.
We finance property entrepreneurs in their Apart from providing access to finance for
purchase, refurbishment of rental properties purchase and refurbishment to people with
and focus on affordable rental housing. We property passion and potential, we support
finance through a mortgage bond. Tradition- entrepreneurs by providing guidance during
ally, you can call us a mortgage financier. the negotiation process to construction and
rent up by offering experience, knowledge
Technically, we are a non-bank financial and expertise during the 15 year loan term.
services company that borrows money from
the capital markets and invests it in inner city
areas to entrepreneurs who want to grow
their businesses.Our requirements
TUHF Projects TUHF Entrepreneurs
• are in major city centres that are in urban decline • have a minimum of 20% of the total project cost to put down as
• are close to schools, transport systems and places of work equity
• are economically sustainable - able to generate sufficient • have an honest and reliable character
income to repay expenses, as well as service the loan and make • know the inner city
a profit • have the property management skills and network of contacts
• will upgrade buildings in the selected inner city area providing for their project’s size
affordable and decent residential rental units • can provide good customer service and firm credit control
• have a positive effective on the areas in which they are invested. • are proud of owning well-maintained, clean buildings
• will make sufficient profit
• have the interests of urban regeneration at heartWhat we do
Products and services
Loan types Definition/description: To fund the...
Buy-to-let Purchase of a property in lettable condition.
Buy-improve-let Purchase of a property and subsequent Improvement to lettable condition.
Improve-let Improvement to lettable condition.
Improve-let-cash-out Improvement to lettable condition with subsequent equity release against residual value post
completion of improvements.
Bond switch Settlement of a 3rd party bond over the property and, if applicable, subsequent improvement to
a lettable condition.
Refinance Settlement of the existing loan in TUHF’s books and to create a new (consolidated) loan in the
books in terms of a new (superseding) loan agreement.
Further advance To increase an existing loan in TUHF’s books for the required sub-type purpose/s in terms of an
addendum to the existing loan agreement
((i.e no new loan is created in our books – addendum to existing loan agreement)
Development loan Land acquisition (if applicable) and development of Sectional Title Units for on-selling.
Student accommodation Purchase of a property (if applicable) and subsequent improvement to lettable condition specifi-
cally for the purpose of accredited student accommodation.
Cash-out A loan against the residual value of a property already owned by the borrower but not bonded
to TUHF or any other 3rd Party and in a lettable condition in terms of TUHF’s standards (i.e. no
improvements necessary)1 2 3 4
invest, ensure that the Find an existing Do your research by If the Portfolio
area falls in TUHF’s building or site for a gathering information Manager advises you,
identified areas of new building that you to prepare for your apply for TUHF finance
finance would like to invest in meeting with a TUHF
Consultant. Complete
the Feasibility Require-
ments form
How we work 5
Begin the credit ap-
Please keep in contact throughout the process. We can help you
proval phase
make informed decisions and support you with helpful information
At TUHF we are proud of our
clients’ well run buildings. We
will be in contact to install a 8 7 6
signboard at your building after
registration as outlined in your
loan agreement
Construction Registration of Meet the conditions
complete, rent up property takes place of the approval & sign
and cyclical processes & construction starts loan agreement.
begin (if applicable).Nice to meet you
Backing ordinary people doing extraordinary things.
We walk right beside you on your property investment journey. Once you have located a suitable building, we are
happy to have a conversation with you to make sure that it is a good fit. We also support you when it comes to the
decision-making process of your service providers such as building contractors and property managers. We also
inspect the work and ensure everything is completed to the highest standard.
What is a guarantee?
Please talk to your Portfolio
Manager when intending to buy An undertaking to the transferring attorneys that the balance
a property on auction as the of the purchase price will be paid to them on date of transfer
process will be different than on and bond registration. TUHF’s attorneys will only issue a
the opposite page. guarantee once the guarantee payment has been made to
their trust account.
Please check the guarantee due date on
your offer to purchase to ensure you meet
the requirements.Congratulations
Your loan has been approved!
You’ve made it this far, and now the hard work starts! But as with most
things, hard work reaps rewards. Remember, even if everything is
done perfectly, from approval to
bond registration can take any-
thing from three to six months.
Here’s what’s next!
Submit pre-bond registration
Receive TUHF’s approval requirements in terms of loan
confirmation letter agreement to TUHF
The attorneys request funds, for
Receive loan agreement from guarantees and TUHF releases the
TUHF funds to a trust account
Bond documents are lodged at
Sign loan agreement the Deeds Office and registration
with TUHF takes place - usually 7-10 working
days after lodgement
Sign the bond documents
with the attorneys
Delays in obtaining clearance certificates, non-compliance of any kind or equity
Send your proof of payment to not being readily available will all delay the process. Please make sure you have
TUHF for the equity you have everything in place to ensure a smooth and speedy registration.
paid.Congratulations
Your property has been registered, let’s build!
Please read your loan agreement carefully as it related to drawdown conditions. Take note of the requirements,
they need to be completed before you can start construction and draw the first funds from your TUHF loan.
Utility account What is an ABIP?
As soon as your property is registered, open ABIP stands for Activity-Based Implementation Plan and it outlines the scope of work to
a municipal account at your local municipal- be completed on your project. It includes a costing of all the elements associated with the
ity. It will take a few months for the account refurbishment or construction of the building together with a programme of the work to be
to be switched to your name. Please make done and a monthly cash flow projection.
provision for your monthly utility fees so you
can settle the back-dated amount when you What is a PRC?
receive your first bill.
A PRC is a project review consultant. He or who will work closely with your professional
DO NOT assume you don’t have she will visit your building on a monthly basis team and make recommendations for
to pay if you don’t get a bill. to evaluate work done and quality of work payment amounts at every drawdown.
You will be back-billed for the completed. They will also make sure the
entire amount once the account project is executed in terms of the ABIP. Please confirm the size of your project with
has been registered. your Portfolio Manager.
Our PRCs are all experienced quantity sur-
veyors or construction professionals
If you have any questions related to your
utility account, please contact TUHF, your
Portfolio Manager or our Utilities Officer who
may be able to assist.What is a drawdown?
You can request 2 drawdowns
A drawdown is the portion of your TUHF loan per month. There is a 5 working
you can access as soon as you have reached day turnaround time from date
certain levels of completion in terms of the of submission to payment.
ABIP. Your loan will be made up of a cer-
tain number of drawdowns based on your
ABIP. Work to the value of your drawdown
needs to be completed and approved by a Final drawdowns
PRC (Project Review Consultant) before you
make your next drawdown request. Please 10% of your construction or refurbishment Where others see
note that the ABIP needs to be revised and amount will be retained by TUHF and will
submitted with each drawdown. only be paid on receipt of proof of comple-
tion of all pre-final compliance conditions.
decline, we see
Drawdown payments to Once we have received confirmation that all
pre-final compliance conditions have been
investment
third parties met we will disburse the final 10% and your
interest rate will be adjusted as outlined
opportunities
TUHF will pay directly to third parties if so
in your loan agreement and the works are
authorised by you and if quotes and invoices
certified as complete by the PRC.
are provided. It is therefore important that
you keep all your receipts and invoices.
The same turnaround time applies What are pre-final compliance
(5 working days) provided all the work has conditions?
been completed to standard and signed off
by a TUHF appointed PRC. These are conditions specific to each project
and will be outlined in your loan agreement
and pre-final drawdown confirmation letter
as well as confirmed by your Portfolio Man-
ager.Time for some housekeeping
Well done! You’ve made it through construction and your
property is getting ready for tenants to move in. Documents required
• Utility accounts - once a month
Compliances Building inspections • Management accounts - quarterly
The main purpose of building compliances is & valuations • A copy of your insurance policy
to protect public health, safety and general noting TUHF’s interest - upon
welfare as they relate to the construction Your portfolio manager will do regular annual renewal of policy
and occupancy of buildings and structures. building inspections. During this visit he/she • Your company’s audited financial
will check the status of your building and statements - annually (within
You are required to be compliant to ensure compliances. 6 months of your financial year
your investment is protected, your building is end)
secure and your tenants are safe and happy. Statements and installments • Other - rent roll etc
Your installment will be debited from your (upon request)
Lifts nominated bank account on the 10th of the
month. If the 10th falls on a weekend, the All of the above can be sent to your
If your building has a lift, we will require Portfolio Manager.
your updated lift compliance certificate installment will be debited on the next
every two years, unless your building’s lift is business day. You will receive your statement
decommissioned, for which we will require by post or email between the 7th -15th of the
proof. month.
If you have any questions,
queries or problems, don’t
Fire safety Your installment is linked to the hesitate to speak to your TUHF
Please submit your building’s fire compliance Jibar interest rate. Should the Portfolio Manager. He or she will
certificate every year. If your building is not prime rate increase or decrease be more than happy to advise
fire compliant, your insurance company may so will your installment.You are and help you.
refuse payment in the case of a fire incident. required to keep your building
insured in terms of your loan
agreement.Your paperwork If you’re a CC or interested in
borrowing in your individual
capacity, please contact your
Portfolio Manager for more
Please provide us with this documentation related to you or information
your company.
Trust Private Company (Pty) Ltd
Documents printed from the
• Auditor’s letter confirming company • Signed resolution by managing partners
CIPC website will ONLY be
structure (e.g. organogram) or directors
accepted if certified by the
• Auditor’s letter confirming the company • Auditor’s letter confirming company
company a following wording on
is dormant or not trading (if applicable) structure (e.g. organogram)
the document: “The documents
• Trust deed • Auditor’s letter confirming the company
printed from the CIPC website
• Auditor’s confirmation of the Adminis- is dormant or not trading (if applicable)
are a true reflection of the orig-
trator of the Trust • Current management accounts
inal and as such have not been
• Letter of authority • Current audited financial statements
tampered with.”
• Current management accounts • 3 months’ bank statements, the most
• Current audited financial statements recent month not older than 3 months
• 3 months’ bank statements, the most (this could also serve as proof of address
recent month not older than 3 months if applicable)
(this could also serve as proof of address • Certified copy/copies of Trustees OR
if applicable) Beneficiaries’ IDs
• Certified copy/copies of Trustees OR • Proof of address (one of the following):
Beneficiaries’ IDs • Bank statement, not older than 3
• Proof of address (one of the following): months
• Bank statement, not older than 3 months • Municipal account, not older than 3
• Municipal account, not older than 3 months
months • Telkom account, not older than 3
• Telkom account, not older than 3 months months
• SARS Income tax return not older than • SARS Income tax return not older than
1 year 1 year
• Current, signed and valid lease agreement • Current, signed and valid lease agree-
mentPurchase plus refurbishment Construction loan for sectional title
• Basic requirements • Purchase plus construction require- Have your equity ready upon
• Details of professional team such as ments approval of finance.
architect, quantity surveyor and project • Levies
manager • Body corporate financials and manage-
• Project plan including construction cash ment accounts
flows and timeline
• Construction team and strategy Refinance Documents that will be
Purchase plus construction
• Basic requirements required later on in the
• Copy of title deed if the property is
• Purchase plus refurbishment require- un-bonded process:
ments • Settlement figures (not older than • Offer to Purchase
• Building plans/sketches 3 months) if the property is bonded • Municipal Accounts
elsewhere • Commercial Lease Agreements
Construction or conversion • FICA Documentation
• Purchase plus construction require- Equity Release
ments • Basic requirements
• Copy of title deed if the property is • Equity amount required
un-bonded
Complete our Feasibility Requirements form online
1. Visit www.tuhf.co.za/services
2. Click on ‘Feasibility Form’ under Step 1
3. Fill in the form and submitWhere others see decline,
we see investment opportunities
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GAUTENG KWAZULU-NATAL EASTERN CAPE WESTERN CAPE FREE STATE
12th Floor, West Wing 27th Floor, 2nd Floor, BCX Building 5th Floor, Upper EastSide 7 Collins Road
Libridge Building Embassy Building 106 Park Drive 31 Brickfield Road Arboretum
25 Ameshoff Street 199 Anton Lembede Street St. George’s Park Woodstock Bloemfontein
Braamfontein Durban, 4001 Port Elizabeth, 6000 Cape Town, 7925 9300
Johannesburg, 2001
TEL +27 (10) 595 9000 TEL +27 (31) 306 5036 TEL +27 (41) 582 1450 TEL +27 (21) 204 8843 TEL +27 (51) 431 8032You can also read
