Construction of a new housing project in Tanzania by Watumishi Housing Company (WHC) is set to commence soon. The company is currently seeking for new financiers to work with, raise funds and identify projects for development.
WHC Chief Executive Officer, Mr. Fred Msemwa confirmed the reports and said that according to the law, investors are required to enter into a three-year contract with the company. As the demand for housing is growing, he pointed out that the company intended to increase its capital and urged more Tanzanians to invest in real estate.
“We will soon be holding consultations with the regulator and the seven investors that make up the REIT before we start allowing new investors, be they companies or individuals. This process will be completed at the end of this financial year,” he explained.
A three-year contract between WHC and seven partners who made the Real Estate Investment Trust (REIT) expired in November last year and that is why they are looking for other investors.
The seven partners were PPF Pensions Funds, National Social Security Fund, Public Service Pensions Fund, LAPF Pensions Fund, GEPF Pensions Fund, the National Health Insurance Fund and the National Housing Corporation.
Dealing in Real Estate Investment Trusts
Dealing in Real Estate Investment Trusts (REITs) is a new concept in Tanzania and yet it provides an immense opportunity for the general public to participate and create personal wealth as well as contribute towards overall economic development. WHC-REIT seeks to work with other national and international fund managers and other stakeholders to develop this market in a manner that is beneficial to all parties.
As a property developer, WHC-REIT is the main implementer of the Tanzania Public Servant Housing Scheme tasked with building of 50,000 housing units in five phases commencing from FY 2014/2015. Houses shall be sold under mortgage arrangements to public servants and other eligible members of the public across Tanzania.
