Property developer eyes crowdfunding for project

Isaac Pinielo | Tuesday June 6, 2017 16:30

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large pool of people.

The company, owned by the Moalusi family, plans to build 17 units for affordable housing, 13 for sale and four for rentals on a 3,685 square metre (sqm) plot in Mogoditshane.

According to Rerotlhe chief executive officer, Enoch Moalusi the project will consist of housing units with two bedroom units with a floor space of 60sqm with one bathroom, a kitchen and living room.

“The units will be grouped in blocks of two attached units, a 480sqm common play area and 17 parking bays, one for each unit,” he said.

He added that each unit will be sold for around P480, 000, adding that the project is expected to be completed by end of July next year.

The project information memorandum states that the investment in the project will be facilitated by Crowd Funding Investment, a company that provides participating investors with investment opportunities focused on housing with impact in the communities, which the developments are located through the online platform.

Crowd Funding Investment is supported by an online platform operated by Reality Africa, which is a meeting place for developers and participants.

The minimum participation amount for investors will be no less than P10, 500, and participants can invest in the project with the opportunity to earn up to 12% interest payments. Reality Africa country director, Sethebe Manake who is also the chief executive officer of Vantage Properties, said crowdfunding gives the investors who want to have real estate exposure but not the complexities of running direct estate, the opportunity to invest and wait for the returns.

“The developer who has a viable project has the flexibility to select an appropriate funding structure that makes their project deliver the highest level of returns,” she said.

Manake said this is an opportunity for Batswana to invest in real estate in a secure, easy, flexible way.

“You get to select how much you want to invest and which project you want, which country, the returns that you find affordable,” she said.

Manake revealed that she introduced Moalusi to the crowdfunding platform of which he eventually listed on. “He had this project in his hands and all he wanted to do was get it funded so that the legacy of his parents is not lost,” she narrated.