1. AFFORDABLE MASS HOUSING DELIVERY By Babajide Alade, B.Arch, MRED, MBA, October 2010 6B George Street Ikoyi, Lagos State, Nigeria www.structuracasa.com 1 Possibilities Within The Nigerian Context

2. AGENDA 1. TYPES OF HOUSING PRODUCT 2. HOUSING FINANCE AND POLICY 3. CONSTRUCTION TECHNOLOGY 2

3. THE MISSING MIDDLE  Middle Class People  Household incomes between N1 million and N5 million annually  Unable to Achieve Homeownership  Lack of affordable good quality product  Lack of mortgage financing 3

4. AFRICAN CONSUMPTION 4 + $275 BILLION SINCE 2000 – LIKE BRAZIL’S AND MORE THAN INDIA’S

5. TYPES OF HOUSING PRODUCT

6. TREND IN URBANIZATION 6 Rural Fewer homes on large plots Urban Numerous smaller homes & flats

7. THE GAP IN HOUSING 7 Slum Housing Tenement Housing Gap Structured Development

8. OPPORTUNITY CREATED BY SUPPLY OF SMALLER HOMES 8 Entry Level Home/Flat Move Up HomeLarge Estate Home

9. OPPORTUNITY IN SMALLER HOMES 9 Age of Home Buyer Home Affordability Supply of Entry Level Homes and Financing Tools Results in More Robust Housing Market

10. OPPORTUNITY IN HOUSING DEVELOPMENT Good roads Water Sewerage Waste Disposal Power Distribution 10 Sample 2 bed starter home – 60 sqm

11. INTEGRATED COMMUNITIES Victoria Garden City, Ajah, Lagos 200 Hectares Lekki Axis Infrastructure 30,000 Residents 11

12. INTEGRATED COMMUNITIES Proposed Legacy Estates Monatan, Ibadan 100 Hectares Infill Development Infrastructure Amenities 800 housing units 12

13. EXPANDABLE AND SHELL/CORE HOMES Home delivered as an external shell Community amenities complete Expandable rooms No interior finishes 13

14. HOUSING FINANCE TOOLS

15. ISSUES WITH HOUSING FINANCE  Housing Finance Requires Large, Long- Term Initial Capital Outlays  Availability of Finance is Limited  Inadequate Financial Infrastructure  Disincentives with property transfers and foreclosure process  Direct Finance is Limited 15

16. OPPORTUNITIES FOR GOVERNMENT TO ENCOURAGE PROGRESS  Enforcement of property rights and ease of land registration and transfers.  Enforceable foreclosure system for mortgage lenders.  Credit information systems such as credit bureaus.  Strong regulations that encourage responsible lending and consumer protection.  Accessible and transparent databases on house transactions and prices.  Regulations to encourage the private development of large formal affordable housing.  Easy access to land for developers through PPPs. 16

17. UNLOCKING “DEAD CAPITAL” 17 Small Business Investments Education $$$$

18. OPPORTUNITY CREATED BY SUPPLY OF SMALLER HOMES 18 Entry Level Home/Flat Move Up HomeLarge Estate Home $$$ $$$ Small Business Investments Education $$

19. ENCOURAGING SIGNS  A pickup in the domestic bond market which may allow for creation of mortgage bonds.  Approval of pension fund investment in bonds and private equity.  Foreign interest in Nigerian financial system. 19

20. KEY OPPORTUNITIES TO INCREASE REAL ESTATE CONSTRUCTION FINANCING  Increasing Debt Sources for Developers  Provide financing at lower interest rates with lender profit participation  Provide developer financing for installment sale loan contracts  Encourage Advanced Deposits or Installment Payments Through Providing a Policy Framework That Gives Buyers More Security  Guarantee Fund  Encourage More Robust Loan Prequalification  Sales Income Trust Accounts  Financing Conditions 20

21. CONSTRUCTION TECHNOLOGY 21

22. WHAT CONSTRUCTION TECHNOLOGIES ARE FEASIBLE?  Sandcrete Blocks Infilling Concrete Column and Beam and Slab Structures.  Masonry Unit Construction  Fired brick  Compressed earth blocks  Industrialized Systems Using Precast Panels  Modular Form Work for Cast in Place Concrete 22

23. MASS CONSTRUCTION IN OTHER PARTS OF THE WORLD 23

24. MODULAR ALUMINUM FORMWORK 24

25. APPLICATION – SLAB FORM  The Corner extrusions allow the slab and wall pour monolithically with perfect concrete surface.  The Dead Head Panel allows the stripping of slab form with the props remaining in position.

26. ATTRIBUTES OF PREFABRICATED ALUMINUM FORMWORK 26  Extremely Fast Construction Sequences  Light weight panels are small enough for one man to carry  Skill required to erect formwork can be quickly learned  Small tools and equipment only  Good Quality Concrete Shell  Allows for easier finishing  No interior or exterior plastering required  The Same Set Can Last More than 500 Concrete Pour Cycles  Good Choice for Repetitive Designs

27. ALUM A EasySet TM SYSTEM 27  Designed to allow the construction of wall and slab at the same time, or for the wall and slab poured in two stages.  Advantages  Cost  Quality  Speed Panel Capacity = 60 kN/m 2

28. WIRE MESH REINFORCEMENT 28

29. CONSTRUCTION IN PROGRESS 29

30. COMPLETED BUILDINGS 30

31. UNLEASHING THE LATENT CAPACITY 31  Building the Right Types of Homes and Communities  Using the Latest Construction Technology to Make Homeownership Affordable  Establishing a Viable Housing Finance Infrastructure  Making use of Creative instruments That Enable Families to Buy These Homes

32. VIDEO 32 4 minute time lapse video of construction site in Salvador, Brazil demonstrating the speed and efficiency of EasySet TM system. Video taken over one full work day 12 hours 7.30 am to 7.30 pm

33. Q & A 33 THANKS FOR LISTENING

34. Babajide Alade Managing Director Structuracasa Nigerian Representative Aluma EasySet TM jalade@structuracasa.com 6B George Street Ikoyi, Lagos State, Nigeria www.structuracasa.com 34