The National Social Security Fund in Uganda has officially commissioned the construction of the 2,740 unit housing project in Lubowa, Wakiso district. The fund’s portfolio also serves to give its members more competitive returns on their savings.
The real estate project will cost an estimated US$ 400m over a 10-year period. The development will take place on the Fund’s 565 acres of land along Entebbe Road. NSSF Managing Director Richard Byarugaba says the Lubowa Housing Estate is in response to demand for quality housing for Uganda’s middle and first class.
Returns on savings
Byarugaba said that the Fund will make an initial investment for Phase I. Thereafter, the project is expected to be self-financing with projection to complete the first phase in one year. The development will have retail and offices space, as well as other social amenities.
The Board Chairman, Patrick Byabakama Kaberenge said that the Fund’s real estate strategy going forward will focus on low cost housing. This will target a significant number of NSSF savers. The planned affordable housing projects include off taker projects in and around Kampala.
Real estate Investments
The Fund’s other key Real Estate investments include, the US $4.34m Mbuya housing project, the US $924,000 Jinja commercial complex in Jinja and the upcoming Mbarara commercial complex.
The Fund which currently boasts of approximately US $2Bn in assets also increased its stake in power utility firm, Umeme, to 23% up from 15% by making an additional investment of about US $16m and is also the largest institutional investor on the Uganda Securities Exchange.