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|
|Medium cost houses||6,047||26%|
|Low cost houses||13,454||49%|
|High cost houses||2,232||11%|
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|
Houses for rent
So far 10 662 have been rented out (leased) to Batswana.
BHC Properties rented.
|Tenant Type||No. Of Units||Percentage|
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.
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.