Strategic investment cash sweep solution for student accommodation development

Advert Date: 08 June 2026. Non-Compulsory Briefing Session: 17 June 2026 at 11:00 (Virtual via MS Teams, Meeting ID: 379 583 002 177 511, Passcode: Dx25PT6u). Closing Date and Time: 01 July 2026 at 11:00. Bids must remain valid for 120 days from the closing date.

Bid Enquiries: Email [email protected] or contact Khensani Zungu at 060 994 2863 during office hours (08:30–16:30, Mondays to Fridays). Submission Address: 90 Grayston Drive, 5th Floor, 90 Grayston Building, Sandton.

Submit bids in a sealed envelope clearly labelled 'Appointment of a Service Provider for the Implementation of a Strategic Investment Cash Sweep Solution' to: 90 Grayston Drive, 5th Floor, 90 Grayston Building, Sandton, during office hours (08:30–16:30, Mondays to Fridays). Late bids will not be accepted. Closing date and time: 01 July 2026 at 11:00. Bids must be submitted on original bid documents, completed in non-erasable ink, and remain intact. One (1) original hard copy and a soft copy (USB) must be submitted. All returnable documents must be included: SBD 1 (Invitation to Bid), SBD 4 (Bidder’s Disclosure), SBD 6.1 (Preference Points Claim Form), SBD 7.2 (Contract Form), Pricing Schedule, Resolution to Sign, Signed/Initialled General Conditions of Contract (GCC), Protection of Personal Information Consent Form, Consent for Credit and World Checks (Forms 1-4), Tax Compliance Status Pin, Company Registration Documents, Valid B-BBEE Certificate or Sworn Affidavit, and Current Central Supplier Database (CSD) Report. Failure to comply with submission requirements may result in disqualification. Joint ventures/consortia must submit a signed agreement, individual Tax Clearance Certificates for each member, and combined banking details post-award.

NHFC requires a solution to enhance an existing loan management system to support complex lending instruments, including cash sweep mechanisms. Current systems only support senior debt with straight-line amortisation and lack functionality for: Subordinate/Junior Debt, Mezzanine Financing, Quasi-Equity Instruments, Blended Finance Products, and Cash Sweep Mechanisms. The solution must: Support blended instruments (straight-line amortised senior debt + cash sweep amortised quasi-equity). Automate cash sweep logic as per the provided Excel demo, including rule-based allocation between senior debt and quasi-equity, forecasted vs. realised repayments, capitalisation logic, and tenure recalculation. Apply rules where the collection amount is the lower of projected repayment or realised cash sweep. Prioritise senior debt servicing before quasi-equity repayment. Automatically update balances, interest calculations, repayment schedules, and tenure after each transaction cycle. Handle exceptions for failed/partial/disputed sweeps. Integrate with NHFC’s existing systems (e.g., LMS-CRM, Credit Ease, Kredits, SLIM) and third-party platforms (banks, payment gateways, accounting systems). Support data migration from Excel spreadsheets and existing loan management systems. Provide robust reporting (transaction histories, exception reports, age analysis, compliance reports) and audit trails. Ensure security, role-based access control, and multi-factor authentication. Deliverables include: Input data capture/validation, automated cash sweep processing, integration capabilities, system upgrades (if required), reporting/audit functionality, and notifications (SMS/email).

Project delivery methodology: Agile, managed in sprints over a maximum period of 8 months. The solution must follow a structured approach to: Replicate the Excel-based cash sweep logic, configure and test the logic, and ensure NHFC can validate automated processing in the live environment. The bidder must demonstrate how the proposed solution aligns with the approved business rules and spreadsheet logic. Methodology must ensure control, consistency, traceability, operational efficiency, and auditability. The solution must support automated cash sweep processing, including rule-based allocation, forecasted vs. realised repayments, capitalisation, and tenure recalculation.

The bidder must demonstrate experience and qualifications in: Delivering solutions that address integrity, compliance, auditability, performance management, supportability, and future extensibility. Providing intuitive user experiences for operational and management users. Supporting efficient support and administration processes. Including controls to reduce operational, processing, and technology risk. The solution must be operationally robust, supportable, and sustainable within NHFC’s current and future environment.

The solution must undergo a structured platform readiness assessment to determine if the existing loan management system can support the required enhancements. If the current environment is inadequate, the bidder must propose necessary upgrades, including: System components, platform versions, database layers, integration interfaces, operating environments, development toolsets, and security controls. The bidder must describe: Upgrade path, technical dependencies, rollback considerations, testing requirements, and business continuity measures. Upgrades must not compromise operational stability, data integrity, performance, or service availability. Upgrade work must be coordinated with enhancement work to minimise disruption and control implementation risk. The solution must remain sustainable for future support and additional enhancements.

Pricing must be submitted on the official Pricing Schedule (Annexure 7). The solution must provide: Capability to receive, capture, validate, store, and maintain input data for senior debt and quasi-equity instruments. Support for client information, loan facility details, forecasts, bank statements, and management accounts. Automated cash sweep processing as per the Excel demo. Integration with NHFC’s existing systems and third-party platforms. Data migration from Excel spreadsheets and existing loan management systems. Robust reporting and audit capabilities. Notifications (SMS/email) for transaction events, exceptions, and reminders. The pricing must cover all deliverables, including system enhancements, integration, data migration, testing, and support.

Pricing must be submitted on the official Pricing Schedule (Annexure 7). VAT must be included in the bid price but shown separately. Payment terms: NHFC undertakes to pay within 30 days from issuance of substantiated invoices. Service providers must maintain updated tax-compliant status for the contract duration. Costs of compiling the proposal are the bidder’s responsibility and will not be reimbursed. Pricing must cover all deliverables, including system enhancements, integration, data migration, testing, and support. No payment will be made for outstanding information not submitted by the service provider.

Mandatory Compliance: Valid OEM partnership certificate. Tax Compliance: Submit Tax Compliance Status Pin (TCS Pin) or CSD number. B-BBEE: Submit a valid B-BBEE certificate (SANAS-accredited) or Sworn Affidavit (for EMEs/QSEs). Minimum B-BBEE Level 4 required. Company Registration: Submit copies of company registration documents. Directors’ Identity Documents: Required for all directors. Central Supplier Database (CSD): Submit current CSD report. Standard Bid Documents: SBD 1 (Invitation to Bid), SBD 4 (Bidder’s Disclosure), SBD 6.1 (Preference Points Claim Form), SBD 7.2 (Contract Form). Additional Requirements: Protection of Personal Information Consent Form, Consent for Credit and World Checks (Forms 1-4), Signed/Initialled General Conditions of Contract (GCC), Resolution to Sign. Joint Ventures/Consortia: Submit a signed joint venture agreement, individual Tax Clearance Certificates for each member, and combined Tax Clearance Certificate post-award. Foreign Suppliers: Must answer the Foreign Supplier Questionnaire if applicable. Non-compliance with any administrative requirement may result in disqualification. Bidders in the service of the state or with directors/members in the service of the state are ineligible.

Contract duration: Maximum 8 months, following an agile project delivery methodology managed in sprints. Non-functional requirements: Ease of operation and support, security (secure user profiles, role-based access permissions, multi-factor authentication), integrity, auditability (full audit trail of all actions, including user, timestamp, and approvals), compliance, risk reduction, reliability, maintainability, recoverability, compatibility with existing NHFC technology platforms, globalisation (language, currency), and performance (response times, turnaround times). The solution must preserve a reliable record of all security-sensitive activities, including sweep rule configurations, repayment parameters, and exception processing. Service levels: Expected to operate with high availability, maintainability, and recoverability. Compatibility: Must integrate with NHFC’s existing systems and future requirements. Licensing and infrastructure dependencies must be clearly stated.

Evaluation is conducted in 5 phases: Phase 1: Mandatory Requirement – Valid OEM partnership certificate required. Phase 2: Administrative Compliance – All SBD forms, tax compliance, B-BBEE, CSD, and other documents must be submitted. Non-compliance results in disqualification. Phase 3: Functionality – Scored out of 100 points across 5 sections. Minimum 70 points required to advance. Section 1 (Technical Capabilities) requires a minimum of 27/35 points. Phase 4: Presentation – Qualifying bidders present their solution. Scored out of 30 points; minimum 18 points required to advance. Phase 5: Price and Preference Points – Subject to the Preferential Procurement Framework Act. Key functionality criteria: Input Data Capture & Support (5 points): Must handle client details, loan facility information, forecasts, bank statements, and management accounts. Cash Sweep Processing Capability (10 points): Must fully replicate and automate the Excel-based cash sweep logic, including rule-based allocation, forecasted vs. realised repayments, capitalisation, and tenure recalculation. Partial support or manual intervention scores 5 points; no support scores 0 points.

Applicants must demonstrate: Strong track record in financial services, investment solutions, and project implementation. Experience in real estate finance, particularly student accommodation, is highly advantageous. Financial viability of the proposed solution is critical, as evidenced by outcomes such as positive net income, positive cashflows, and meeting covenant criteria (e.g., debt service cover, interest cover, loan-to-value ratios).

Scope: Implement a strategic investment cash sweep solution for a student accommodation development project (ABC Student Accommodation, Boschfontein 386 IR). Key deliverables: Financial modeling, cash flow management, and capital structure optimization. Financial parameters: Senior loan pricing at Prime + 10.3% (hurdle rate: 10.3%), Mezzanine debt (Cash Sweep) at Prime + 11.0% (hurdle rate: 11.0%), Mezzanine debt (Straight Line) at Prime + 11.0% + 0.5% (hurdle rate: 13.5%). Project costs: Land (R5,500,000), Building (R60,602,988.46), External Works (R7,269,453.89), Contingency (R2,830,288.47), Professional Fees (R9,441,202.46). Total transaction cost: R110,300,138.51.

Capital structure: ABC Student Accommodation Equity (R6,000,000), NHFC Senior 1 (R80,300,138.51, admin fee: R803,001.39, moratorium: 20 months, tenure: 240 months), NHFC Mezzanine Debt (Cash Sweep) (R24,000,000, admin fee: R240,000, moratorium: 20 months, tenure: 243 months, sweep: 0.47). Pricing: Senior 1 at Prime + 10.3%, Mezzanine (Cash Sweep) at Prime + 11.0%, Mezzanine (Straight Line) at Prime + 11.0% + 0.5%. Additional financial requirements: Proof of equity, verification documents, and compliance with tax (27%) and VAT (15%) regulations. Expected blended IRR from Senior & Mezz: ~10.71%.

B-BBEE Level 1 compliance mandatory. Black Owned: 100%. Black Female Owned: 0%. Youths: 0%. Procurement Recognition: 135%. Valid B-BBEE Certificate dated 30 September 2024 or later required. Proof of equity and verification documents must be submitted. Concession eligibility based on fulfillment of B-BBEE criteria.