The ruling that new home owners are not liable for historical debt

Historically the applicants in this matter were various consumers from a number of municipalities.  They had been refused the supply of services to their properties, or had had the services to properties terminated, on the basis that they refused to pay the municipalities concerned any amounts incurred by the prior owners of these properties.

TUHF was one of the “other parties” that intervened in the matter in the Constitutional Court. 

TUHF Ltd (“TUHF”) was admitted by the Court as the first amicus (friend of the court).  TUHF made novel submissions to the Court explaining how (in its view) it was not necessary to deal with the constitutionality of section 118(3) if it was properly understood and interpreted in light of its historical common law treatment.  BASA (the Banking Association of South Africa) was admitted as the second amicus.

TUHF’s main argument was that the common law requires that a creditor (i.e. the municipality) can only acquire limited real rights in the property of another (even for security purposes) as envisaged in section 118(3), if some form of publication of those rights occurs, to notify the public at large (and other creditors) of the fact that the property stands as security for someone else’s claim against the owner thereof.

The metropolitan municipalities of Tshwane and Ekurhuleni have been ordered by the Constitutional Court to cease the widespread practice of making new homeowners liable for historical debt of former owners. New owners now have no connection to a seller’s municipal debt (including water, electricity, rates and taxes charges).

“Over the years, our clients have come to rely on TUHF for more than just funding – we provide support in all areas that affect our clients. We continue to make a concerted and collective effort to develop our industry providing support, guidance and risk management,” says Paul Jackson, TUHF CEO.

Thank you to all our guests that attended our TUHF Talk on Trends and Opportunities in Downtown Joburg Property recently in Johannesburg.


We especially thank our guest speakers for sharing their knowledge. Click on the links below to download their presentations:


On Thursday, 26 January, TUHF Limited successfully launched the first R280m tranche of their R1 billion DMTN (Domestic Medium Term Note) Programme on the JSE (Johannesburg Stock Exchange).

TUHF welcomed new investors including Sanlam, Stanlib and RMI, who joined existing TUHF funders – Old Mutual ’s Futuregrowth and Mergence.

These funds will enable TUHF to grow its financing of inner city development projects in all major city centres of SA, directly improving rejuvenation and meeting the high demand for affordable accommodation downtown.

“The listing of this note on the JSE marks a new dawn for TUHF in accessing debt capital markets. Our credit rating and 14 year track record speaks to the specialisation, governance and excellent risk management our business has become known for in commercial finance and inner city property,” said Ilona Roodt, TUHF’s CFO.

She added that “Although the pricing was higher than originally anticipated, we realise that as this is TUHF’s inaugural debt listing and rating, new investors are being cautious. Seeing and managing investment opportunity in inner cities is our specialisation, with proven growth over 14 years having financed over R4 billion and 43 000 units downtown.  Over time we look forward to building on this performance and developing strong new investor relationships.”

Paul Jackson, TUHF’s CEO and Co-founder added: “We look forward to the opportunities this unlocks for TUHF and our clients’ business growth.  The funds will be instrumental in sustaining our 5 year average loan book growth of 13%.  This building block in our long term debt capital strategy means we are one step closer in achieving our vision of a R5 billion book servicing every major city in South Africa.”

Launching the R280m tranche marks the first of 3 tranches planned over the next 3 years totalling R1 billion. The debt arranger for TUHF’s DMTN is Deloitte Capital.

Greening and environmentally friendly solutions are increasingly gaining traction and duly so. TUHF recently hosted an event on practical greening for inner city landlords resulting in an interactive experience that spoke to property entrepreneurs in a unique manner changing the way they understand the concept of ‘green buildings’ particularly for inner cities.

Paul Jackson, CEO of TUHF Limited was the host for the morning and helped guide clients through the exciting presentations. “It’s well worth noting that South Africa has the fastest growing green building industry in the world,” noted Jackson, “it means that there is huge opportunity to provide knowledge and professional development prospects in the industry.”

While often used without real understanding, the ‘greening’ concept has become a formidable differentiator if properly grasped and implemented. Warren Gray from Solid Green, Nic Barnes, CEO of Jozi Housing and Grahame Cruickshanks from the Green Building Council of South Africa (GBCSA) shepherded everyone on the green journey.

Warren Gray, Solid Green was instrumental in giving insight into the concept that when going green, it usually takes some time before a return on investment is seen. Using energy saving light bulbs or implementing solar geysers can often take up to 2 years before any meaningful impact can be felt and any savings can be passed along to tenants. However, once you pass that mark, the savings increase exponentially compared to traditional methods such as incandescent light bulbs.

Nic Barnes, CEO of Jozi Housing stated: “If you can’t measure it you can’t manage it.” Barnes advised that making sure that you utilise suppliers who are true professionals and have a good track record around green installations required was key to success. Specifications of any equipment installed is of vital importance and ‘one size fits all’ is an absolute no-no.

Grahame Cruickshanks introduced everyone to the GBCSA and how they work with their members, local government and other professionals in the property market to #bring changehome. He also reminded us that interaction with the people occupying the building, communicating about the redesign or refurbishment is therefore as important as the actual redesign or refurbishment.

The interactive nature of this talk filled the much needed “information
gap” between owners to engage with green experts and start the discussion around requirements and choices. “It also allowed them to go beyond a typical greening discussion, and have a meaningful conversation about the impact of any decisions on the buildings and its resources,” concluded Jackson.

As always, the morning ended with an opportunity to network with partners and clients as well as the presenters. Additionally, it provided an opportunity to maintain relationships previously formed and forge new ones – remaining true to our vision of providing support and guidance for all our clients.

Thank you to all our guests that attended our TUHF Talks on Practical Greening recently in Johannesburg and Durban!

We especially thank our guest speakers for sharing their knowledge. Click on the links below to download their presentations:



For photos from the events, visit our Facebook page:

Recent announcements by the eThekwini metropolitan municipality combined with a renewed appetite for inner city property is creating opportunities for investors in Durban. We spoke to Sivan Govender, Regional Manager for TUHF’s KwaZulu Natal branch about these opportunities.


Read the original article published in the Real Estate Investor Magazine : June 2016


Download PDF

Things are looking up for housing development in downtown Johannesburg where entrepreneurial resilience, eager to meet the demand of densification, has paved the way for refurbishment and renewal.


Read the original article published in the Leadership Magazine: May 2016


Download PDF

Leadership talks to founding member and CEO of TUHF, Paul Jackson, about the inner city property market in South Africa.


Read the original article published in the Leadership Magazine: May 2016


Download PDF

JOHANNESBURG, Braamfontein. May 11, 2016 – Organized as a refreshing breakfast talk, TUHF hosted a conversation around construction, discussing and addressing the complexities and different challenges faced by inner city property entrepreneurs when dealing with the construction process of an inner-city project.


Hosted by Paul Jackson, CEO of TUHF Limited, the talk captured specific elements of the construction process involved in either refurbishing or building a new property aided by speakers such as Andrew Murray- Chairman and co-founder of Murray & Dickson Construction, Tapiwa Muvevi who has been a partner at Shabangu Architects since 2004, Ryan Du Preez who currently stands as a Partner at Teifenthaler attorneys with specialties in construction law, and Brendan Smith- Managing member at BTS Projects.


“Construction is an adversarial and tough business…” explained construction expert Andrew Murray. “You are only going to get the best results from a contractor that you can trust and you need to make sure you meet with your professional team on a monthly basis to address the financial issues that arise from the construction process.”




Tapiwa Muvevi, with over 17 years of project experience spoke about the architectural tips for housing, illustrating fundamental construction processes such as managing the ongoing project insurance requirements including the resolution of insurance claims, receiving and distributing statutory compliance certificates and documents to appropriate parties, and assessing and reporting on end user installations.


Ryan du Preez of Teifenthaler Attorneys elaborated more on the legal side of the construction process, explaining that the interest lies in the building and that it is necessary that property entrepreneurs create security for their investments. “Situations arise where the work is defective, the contractor is bad at their work or he has simply left. That’s why it is important that you get documentation guaranteed by ABSA or Lombard to gain security from the contractor, guaranteeing performance security.” explained du Preez. “Time barring is important. It is necessary that the contractor does certain things in time in order for them to get more time and money. With this regard an investigation of who he is, what he has done in the past and speaking to previous employers puts you in a favourable position.”


Brendan Smith finished off as our last speaker, providing the audience with a presentation on the different surprises that may arise in the construction process- Scope creeps which are processes where projects grow beyond their anticipated sizes, Cost overruns- arising from inadequate designs, insufficient information at the onset of projects and lack of financial control, as well as project delays.

Smith further explains that to tackle unlikely surprises during construction it is best to not be too hasty to rush onto site and to plan thoroughly. “Projects must be executed under sound and firm project management principles and the more rigid the principles and procedures are, the less chances of a disaster happening,” said Smith.




“Quality is never an accident; it is what comes out of high intention, crucial efforts, experienced execution and hard work. And we want our clients to strive for that with every project they build,” said TUHF CEO, Paul Jackson as he closed off the event. “It represents the decisions of a true property entrepreneur.”


The conversation ended with light refreshments offered to the attendees, also allowing for networking for clients to gain more insight from our speakers on the different construction aspects to look out for.


For more information please contact us at 010 595 9000.


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Twitter: @tuhfltd




JOHANNESBURG – It was a proud night as 35 property entrepreneurs celebrated the completion of 6 months of property entrepreneurship training with TUHF.


“Although TUHF has offered training to our clients before, this programme is the first of its kind; facilitated by Professor Francois Viruly from UCT and Henry Chitsulo from Bold Moves and endorsed by UCT’s Faculty of Engineering and the Built Environment,” said Lusanda Netshitenzhe, Development Impact Manager at TUHF.

“Our training programme is designed to strengthen our client’s property investment knowledge & skills and to support them in growing their property portfolios.  These entrepreneurs are catalysts in contributing to job creation, urban regeneration, local economic development and ultimately multiplying our economy,” continued Netshitenzhe.




The keynote speaker Sonja Loggenberg from the National Treasury’s Jobs Fund emphasized her respect and appreciation of entrepreneurs, the challenges entrepreneurs face and how critical their contribution is to the economy and society as a whole in moving South Africa forward.

Professor Francois Viruly, Associate Professor at the University of Cape Town’s Department of Construction Economics and Management saluted the graduates: “We have men and women here tonight who might not have had a formal tertiary education, but who have had the courage to move themselves forward to become property entrepreneurs and to further their knowledge through completing this programme.”




The 35 entrepreneurs attended the programme over the last 6 months working both individually and in groups to learn about topics such as property valuations, property development, property management, property law and property tax among others. Three groups were recognised and received awards for their well-researched projects which demonstrated that the intended learning outcomes of the programme were achieved.

TUHF is a non-bank financial services provider giving access to finance to entrepreneurs for the purchase, refurbishment or conversion of inner city properties to multi-unit residential or mixed-use projects.




Media contact: Tina Bodill,

TUHF – Marketing & Communications

010 595 9000

Josephine Tshaboeng and Simon Mkhize became property entrepreneurs with assistance from TUHF. Read about their experiences here.