The BHC Business Case

BHC provides a mixture of low, medium, and high income houses. These houses   are for sale and some are for rent. Since its establishment in 1970, BHC has so far delivered almost 25 000 houses to Batswana. Atleast 14 422 houses of the 25 336 houses have been sold to Batswana while the remaining 10 662 are rented out to citizens.

Analysis of portfolio by property type

Property Type No. of Units Percentage
Townhouses 812 3%
Medium cost houses 6,047 26%
Flats 2,409 10%
Clusters 194 1%
Low cost houses 13,454 49%
Offices 19 0%
Unclassified 169 1%
High cost houses 2,232 11%
Total 25 336 100%

The Corporation’s assets have also grown from R6 548 855 in 1972 to over two billion pula (P2 billion) by April 30, 2015.

BHC Products and services

Products (houses for sale and houses for rent)

Houses for sale

The Corporation offers outright sale of housing units and financing facilities through the Tenant Purchase Scheme and Step Ownership Scheme. Both schemes were suspended for some time. The Tenant Purchase Scheme  has been re-introduced  and is expected  to be in motion by August this year following finalization of the Corporation’s Loans  Management System and approval of interest rate by the Ministry. So far 14 422 houses have been sold to Batswana.

Analysis of BHC Properties sold to Batswana to date

Category Number of housing Units
Outright - Conventional Titles 8,865
Tenant Purchase Scheme 4,932
Step Ownership Scheme 252
Outright - Sectional Titles 643
Total  14 422

Houses for rent

So far 10 662 have been rented out (leased) to Batswana.

BHC Properties rented.

Tenant Type No. Of Units Percentage
Parastatals 2075 19%
Companies 491 4%
Staff members 93 0.8%
Local Authorities 425 3%
Individuals 3,470 32%
Government 4,108 38%
Grand total 10,662 100%

BHC Services

The Corporation provides maintenance services and professional services. BHC has expertise in the following areas:  Architecture, Civil and Structural Services,Quantity Surveying, Building Inspectorate through its External Projects Department. BHC also provides Project Management services before construction (pre-contract) and during construction (post-contract) for third parties such as Botswana Police, BURS  and Botswana Defence Force. In this arrangement BHC charges fees for the services. 

Financing

The Corporation is committed to driving its financial sustainability. The Corporation proactively manages its finances in a bid to maximise its revenue and cost optimisation. Since cessation of PDSF loans to parastatals in 1990, the Corporation raises   money from financial markets through Bonds and other means. It does not draw subversion funds from government. Hence, reduced dependence on government for funding.

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