Irish investor Howard Eurocape and US financial services company MuniMae have completed the initial fundraising for their $1bn (£500m) affordable housing fund in South Africa.

The Workforce housing Fund will invest in 30,000 homes from both the to-let and to-sell sectors. The homes are aimed at low to moderate-income families.

The joint venture, called International Housing Solutions, said today it had completed fundraising $175m (£87.50) of equity. It is targeting a total of $240m (£120m) of capital commitments.

Michael Falcone, CEO of MuniMae said: ‘We began International Housing Solutions in order to bring our expertise in financing affordable housing projects to countries around the world.

‘Our international activities have become increasingly important as the credit market disruption has impacted fund raising ability for U.S. projects.’

International Hosing Solutions was formed in 2005. It has offices in Johannesburg, London, the US and Dublin.