International Housing Solutions(HIS), the housing-focused investment firm, has received a further investment worth R150-million from international banking group Citi.

HIS estimates that the money, which will be added to the R1.7-billion in capital already amassed for the group’s South African Workforce Housing Fund, will fund around 30,000 homes in South Africa.

The funding is to be used for equity financing in South African projects where gaps in economic development and employment have not been addressed adequately by financial institutions, reports Engineering News.

“By joining hands with HIS, we can assist in various roles of financier, adviser, partner, implementer, and integrator, and help mobilise finance and expertise for development projects that are aligned with the intent of the Financial Sector Charter,” said Citi’s Donna Oosthuyse.

The South African Workforce Housing Fund was established in order to invest in housing for rent or sale to low and moderate income families, in order to help meet the growing need for affordable housing in South Africa.

Elize Stroebel, IHS country director and former CEO of the Gauteng Partnership Fund, said South African-based developers have often faced difficulty in obtaining equity finance to make large-scale affordable housing developments viable, for both themselves and home-buyers.

”To bridge this gap, IHS involves equity investors, amongst others. We are committing our own capital, as well as that of international and domestic investors like Development Bank of Southern Africa and Citi, to help finance affordable housing projects in the form of equity,” says Stroebel.