Establishment of a Real Estate Investment Company Tender - 49680233

Procurement Summary

Country: Senegal

Summary: Establishment of a Real Estate Investment Company Namely Société Immobiliere dInvestissements (S2I)

Deadline: 11 Feb 2021

Posting Date: 30 Jan 2021

Other Information

Notice Type: Tender

TOT Ref.No.: 49680233

Document Ref. No.: 1272463

Competition: ICB

Financier: World Bank (WB)

Purchaser Ownership: -

Tender Value: Refer Document

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Tender Details

Expression of Interest are invited for Establishment of a Real Estate Investment Company Namely Société Immobiliere dInvestissements (S2I).
REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION # 1272463
This Request for Expression of Interest is for a Firm Selection. Please log in as a valid Firm User if you wish to express interest in this selection.
Selection Information
Assignment Title
Establishment of a real estate investment company namely Société Immobiliere dInvestissements (S2I)
Publication Date
28-Jan-2021
Expression of Interest Deadline
11-Feb-2021 at 11:59:59 PM (Eastern Time - Washington D.C.)
Language of Notice
English
Selection Notice
Assignment Country
· SN - Senegal
Funding Sources
The World Bank Group intends to finance the assignment/services under:
· BB - BANK BUDGET
Individual/Firm
The consultant will be a firm.
Assignment Description
SELECTION FOR CONSULTANTS BY THE WORLD BANK GROUP
REQUEST FOR EXPRESSIONS OF INTEREST
Electronic Submissions through World Bank Group eConsultant2

https://wbgeconsult2.worldbank.org/wbgec/index.html
ASSIGNMENT OVERVIEW
Assignment Title: 1272463 - Establishment of a real estate investment company namely Société Immobiliere dInvestissements (S2I) which will attract capital from local (including FONSIS) and international investors to support the development and commercialization of 10, 000 affordable houses in Senegal through a rent-to-own scheme.
Assignment Countries:

- Senegal
ASSIGNMENT DESCRIPTION
The Consulting Firm will carry out feasibility studies (technical and economic) for the establishment of a real estate investment company namely S2I, which will be tasked with developing the supply of affordable and social housing units aimed at low to middle income households. The studies will determine the market conditions, the optimal legal and operational structure and financing scheme/instruments in order to ensure a profitable, sustainable and secure model. To that end, a deep analysis of the rent-to-own scheme will be conducted.
As part of the assignment, the Consulting Firm will conduct an assessment of the various stakeholders (local construction material manufacturers, real estate developers, operators and builders, social and affordable home buyers, financing providers to both developers/builders and buyers, etc.) to better understand the housing rental and sale market conditions in the Dakar-Thiès-Mbour Triangle. The outputs of the feasibility study will enable to elaborate the Business Plan of S2I that will feed into the design of an adequate marketing strategy for each target (developers / construction companies and buyers). The Business Plan will help for the design of a sound investment thesis and will identify potential public and private investors and lenders to S2I and gauge their risk/return appetite in order to test the investment readiness and creditworthiness of S2I.
Context

Senegal has a significant and persistent housing deficit which was estimated around 322, 000 units for the whole of country and 158, 000 for Dakar. This situation is due to several factors including rapid urbanization rate, the shortage of supply of land for buyers, the anarchic development of real estate, especially in the capital, Dakar, which is home to nearly 25% of the population of Senegal while accounting for only 0.3% of the country`s total territory.
This deficit continues to rise due to fundamental constraints on both the supply and demand side. Sufficient supply of housing remains a major challenge and access to mortgage finance is still limited translating into a very low mortgage to GDP ratio of 0.86%.
As part of the national development strategy namely Plan Senegal Emergent, the Government of Senegal has launched several initiatives to tackle the housing issue, including the construction of the Diamniadio urban center with the aim of reducing the housing deficit by decentralizing economic activity. Nevertheless, despite these efforts, at least 12, 000 homes would need to be produced per year to meet a growing demand.
Furthermore, affordability remains a key issue as land for housing is becoming increasingly scarce and more expensive. To date, the low-income households are left stranded with only 20% of housing available for sale costing less than CFAF 20 million (US$37, 000). They cannot access housing with their modest incomes due to the high cost of housing units and lack of adequate financing. Mortgage interest rates are inaccessible for bulk of the population (in 2017 the average interest rate was 7.62%). Therefore, access to affordable housing remains a major constraint for the overwhelming majority of households.
Given the above mentioned context, the Government of Senegal has put in place a flagship social housing program namely 100, 000 Housing Units Program aiming to building 100, 000 housing units primarily dedicated to low and middle income segments to improve access to affordable housing and allow a large number of Senegalese households to access property.
Summary of key activities as part of the assignment:
a) Activity A: Market study of the current housing sector in the Dakar-Thiès-Mbour triangle to identify key stakeholders, trends, features, and market gaps preventing the development of social and affordable housing units, including economic and demographic mapping of populations living in the above mentioned geographic area.

b) Activity B: Assessment of key housing supply players (identification of top 20 developers), analysis of price points of affordable housing units, analysis of accessibility of tailored financing products for real estate developers and builders, assessment of local construction material manufacturers and distributors and impact on the housing units price, ), assessment of land availability for affordable housing programs.

c) Activity C: Assessment of the demand characteristics (opportunities and constraints), legal framework, comparative analysis of various financing schemes enabling home ownership for low- and middle-income households, including a deep dive on the rent-to-own model and its suitability to the Senegalese affordable housing context.

d) Activity D: Elaboration of the Business Plan of S2I: geographical scoping, governance and management framework, shareholding structure, financial modelling and stress testing, funding strategy (including assessment of potential issuance of REITS), legal and fiscal framework.
A detailed terms of reference will be provided to short-listed candidates only.
The expected outputs of this assignment will be:
1. Assignment report including a methodological note, an inventory of the data necessary for the study, the mission execution schedule, a presentation of the team dedicated to the mission, an estimated budget;

2. Summary document of the feasibility study report in PowerPoint format;

3. Full report of the feasibility study in Word format;

4. Summary document of the Business Plan in PowerPoint format (maximum 20 pages);

5. Full Business Plan in Word format with Annexes of the financial model in Excel format.
FUNDING SOURCE

The World Bank Group intends to finance the assignment / services described below under the following:

- FONSIS / IFC
ELIGIBILITY
Eligibility restrictions apply:
INDIVIDUAL / FIRM PROFILE

The consultant will be a firm.
SUBMISSION REQUIREMENTS

The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.
Interested firms are hereby invited to submit expressions of interest.
Expressions of Interest should be submitted in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html)
NOTES

Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.
Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted.
Qualification Criteria
· 1. Provide information on the core business of the Consulting Firm, its team and its experience
· 2. Provide information showing the Firms relevant track record for this type of assignment as well as information on the qualifications of key staff who will be involved in the assignment
· 3. Provide information on the technical capabilities of the Firm to conduct specific industry assessments and to elaborate Business Plans; and provide examples of similar assignments completed in the last 10 years
· 4. Provide information on demonstrated knowledge of the local market and global housing value chains *
· 5. Provide demonstrable knowledge on the local economic and political environment in Senegal

Documents

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