Nurcha is an innovative construction finance company that supports the national programme to house all South Africans in sustainable human settlements. Nurcha provides bridging finance to contractors and developers involved in the construction of SUBSIDY and AFFORDABLE HOUSING, COMMUNITY FACILITIES and INFRASTRUCTURE.

Nurcha is a section 21 company (not for gain) and is funded by the South African Government in partnership with the Soros Foundation, various overseas donors and other commercial lenders.

The Nurcha Advantage

If you are a contractor or developer involved in housing, community facilities or infrastructure, you can take on your next contract with confidence knowing that Nurcha can provide you with the bridging finance necessary to ensure that your project will be successful and profitable.

If required by you, Nurcha will help you assess the contractual and financial viability of your project, organise the necessary guarantees (where applicable) and loans and provide all the support you need to professionally manage your project. Nurcha is not linked to the employer or the consulting team.

We act only in your best interests. Our success depends entirely on your success and we will do everything necessary to ensure the satisfactory completion of your project.

The relationship between you and Nurcha will be based on mutual respect and common interest.

Intermediary Managed or Direct Finance

Nurcha is an organisation that is regarded as the partner of choice for those seeking innovative construction financing solutions. We are specifically geared to provide construction finance for contractors or developers who cannot easily access finance from the conventional financial institutions.

Each contractor or developer has unique needs and levels of experience. Some require a more closely managed approach than others. Nurcha will assess the needs of each applicant and structure the loan accordingly.

Intermediary Managed Finance

Emerging contractors with little or no project management experience, and who require a high level of support, are funded and managed through a system of financial intermediaries.

These are independent specialists who are under contract to Nurcha. They have extensive knowledge of the construction industry and supplier network, and have sound relationships with all role-players involved in the delivery of subsidy housing, infrastructure and community facilities. They provide a range of construction support services to suit the contractor and are required to manage the programme as stipulated by Nurcha.

Direct Finance

If you are a more established contractor or developer and do not require the close management by an intermediary, then you will need:

• a minimum of 3 years experience in the construction industry
• audited company financial statements and/or management accounts
• to provide tangible security

You will be financed directly by Nurcha and can benefit from the experience and professional advice available from our programme managers. If you have these credentials, simply contact Nurcha direct and we will gladly assist you.

Which services does Nurcha provide?

Nurcha’s bridging finance loan supports qualifying developers and contractors who are undertaking affordable housing projects. Nurcha can provide between 70% and 95% of the bridging finance required for the project (calculated on the peak working capital requirement).

How to qualify for Nurcha’s services?

Project Requirements

The loan is aimed at supporting established developers and contractors who build affordable housing and associated infrastructure.

The selling price of the housing package (serviced site and house, VAT inclusive) should not exceed R350 000. In the case of mixed developments with a range of house prices, there can be a limited percentage of houses with selling prices between R350 000 and R500 000.

These figures are reviewed from time to time.

Applicant Requirements

The developer or contractor applying for a Nurcha financing product should:

• Have a minimum of three years’ experience in the affordable housing market
  
• Have audited company financial statements for a minimum period of two years
  
• Provide Nurcha with the company’s current quarterly management accounts
  
• Contribute the first 5% to 30% of the bridging finance requirement of the project, dependent on the value of the security provided by the developer. Sunken costs, such as the purchase of serviced sites by the applicant, as well as the professional fees expended in the project as at the date of application, may be considered as part of the applicant’s contribution to the peak bridging finance of the project. The purchase of raw land will only be considered as part of the applicant’s contribution under certain circumstances.
  
• Provide Nurcha with adequate collateral for the loan, such as personal suretyships supported by the assets listed in their personal and company balance sheets and a bond registered to Nurcha over a fixed property, or a cash deposit as security.
• Nurcha reserves the right to decline projects deemed not financially or technically viable.

Documentation that must accompany your application

Documentation required will vary for different legal entities and is dependent on the role of the parties involved in the project, i.e. developer/contractor, land owner, surety, directors or members etc. Applicants that qualify will be provided with the applicable list of documentation required.

Costs and management fees

Typical costs that you would incur include:

• Interest – Interest on the loan is charged at a competitive rate for the term of the loan. Interest is due and payable monthly in arrears on the outstanding loan balance.
• Nurcha loan raising fee – A raising fee is charged by Nurcha.

The interest rate and the raising fee are determined by a matrix analysis of the applicant as well as the project, and is part of the assessment process.