Wednesday, 13 November 2013

NSSF unveils New real estate investment



The National Social Security Fund has unveiled the $ 400M investment project in housing and multipurpose developments in Lubowa. The project is expected to activate the fund’s property that has been redundant especially land. The housing project is also probable to boost the fund’s performance and expected to increase the members’ interest gains to 20% upon completion.

The real estate project is the first one of it’s kind that the National Social Security Fund is under-taking. It is aimed at offsetting utilization of the fund’s available land for profit and interest fetching investments to increase performance in real estate.
The 565 acres of land in Lubowa was bought ten years back in 2003 at 50 million shillings per acre. The land will therefore be developed into a housing estate under the theme live, work and play. The land which is currently under cultivation will be developed into a self-sustaining and multi-purpose area. It will have 2741 housing units of different types, service centers, public space and security among others.
The project was initiated in 2012 with the procurement processes by SBI international holdings the design consultants. The real project will begin in January 2014 with a selection of contractors which will be open for competition. The first phase will involve construction of 360 houses, rental facilities, initial infrastructure, schooling facilities and security services. When finished, the initial investments will be offset to sustain further contractions in later phases.              
According to Richard Byarugaba the fund managing director, the project will transform lives in terms of services and employment. The fund contributors will have priority in acquisition of property upon completion of estate development.
The project is expected to be mixed given the diversity of developments that range from schools, residential, commercial and recreation centers. It is projected that if well developed the project will fetch the fund an interest return of approximately 20%.

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