Urbanova — Funding Requirement & Structure
The R8.5 billion sources and uses, the proposed structure and the return analysis underpinning Urbanova.
Section 28 · Business Plan
Funding Requirement & Structure
The R8.5 billion sources and uses, the proposed structure and the return analysis underpinning Urbanova.
14.1 Sources and Uses
14.2 Proposed Structure (Analyst)
| Instrument | Amount | Pricing / terms | Target providers |
|---|---|---|---|
| Ordinary equity | R3.40bn | Drawn FY2027–FY2029; first-loss | PIC, 27four, impact funds, sponsor |
| Senior secured debt | R5.10bn | JIBAR + ±250bps (≈10.25% all-in); 2yr grace; 13yr amortisation; sculpting recommended | DBSA, IFC, IDC, Proparco, Nedbank CIB, Standard Bank CIB |
| RCF (standby) | R400m | 11.5%; liquidity backstop; undrawn in base case | Commercial banks |
| DSRA | R250m | Funded at close from working-capital allocation | — |
Equity is drawn ahead of debt (R1.5bn in FY2027) so that lenders fund
into a de-risked, partially stabilised asset base; senior drawdowns are
milestone-gated to unit delivery. Green tranches referencing EDGE
certification should be negotiated with IFC and Proparco at 25–75bps
inside conventional pricing on up to R1.5bn of the senior quantum.
14.3 Return Analysis
| Return measure | Value | Basis |
|---|---|---|
| Equity IRR — sponsor exit value | 58.3% | Terminal equity = R18.8bn FV less net debt of R3 012m |
| Equity IRR — book value exit | 8.6% | Terminal equity at depreciated cost; below cost of equity |
| Terminal equity value (sponsor) | R15 788m | FY2031 |
| Terminal equity value (book) | R4 444m | FY2031 |
| Money multiple (sponsor exit) | 4,6x | On R3.4bn equity |
The heatmap shows the return case degrades gracefully with occupancy
but violently with exit valuation: a 30% valuation haircut combined with
a 6-point occupancy miss drives the equity IRR toward zero. Underwriting
should therefore anchor on the rental-only normalised case (Section 16)
with sponsor-case upside treated as carry.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Urbanova Living Developments (Pty) Ltd.