This is the second project the Fund has started this year following the launch of the Shs3.3b multi-purpose Jinja Development Project last month.
The Fund also plans to launch three other real estate projects including Lubowa Housing Project, Pension Towers and Off Taker Housing Project this year. This will bring the Fund’s total investment in real estate to Shs578b.
Mr Patrick Byabakama Kaberenge, the NSSF board chairman, said the new venture is in line with NSSF’s real estate investment strategy and the Fund’s 10 year strategic plan. “By the end of this year alone, the Fund would have invested close to Shs578b in real estate projects in Uganda,” Mr Kaberenge said.
Speaking during the ground breaking ceremony at Mbuya on Wednesday, Mr Richard Byarugaba, the managing director, said the Fund will get a 20 per cent return on the high end 40 unit, three bedroom apartments.
He said this was the second project the Fund was constructing in Mbuya having finished a six-apartment high end project that was completed in 2012.
“We are making significant progress in real estate in line with our mandate to create value for our members. Projects such as this one started in Mbuya give us a better opportunity to give NSSF members a reasonable and consistent return on their investments,” he said.
He added that the housing project dubbed Mbuya Soho Courts is in response to a housing deficit and lack of adequate and well planned real estate in Kampala.
The project is estimated to be completed in 24 months.
The estate, sitting on a three acre piece of land, will provide accessible first class residential apartments. Each apartment will occupy an approximate gross floor area of 160 square metres, the master bedroom en-suite with both a bath tub and shower and the other two bedrooms sharing a bathroom, lounge opening to a terrace, dining room and kitchen, drying yard and servant quarters.
Mr Byarugaba revealed that each apartment unit will be sold at Shs650 million and this can be accessed through a mortgage arrangement with Housing Finance Bank.
This, therefore, means that the Shs14.5 billion 40 unit apartments will fetch the Fund Shs26 billion once sold off.
He explained that the Fund aims to reduce its portfolio risk by having a well-balanced and diversified portfolio in line with its investment policy.
Increase in assets
Over the last five years, NSSF has increased its assets from Shs1.7 trillion in the financial year 2010/11 to Shs6.25 trillion today. Up to about Shs4.6 trillion of the Fund’s assets are currently held in fixed income securities.
Daily Monitor
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