The National Social Security Fund (NSSF) officially opened the Citadel Place, Mbuya, its 40-units housing project, the latest addition to its real estate portfolio.
The project is a condominium housing development in the upscale residential area of Mbuya, located about 7 kilometers from Kampala City Centre.
The project comprises 40 high-end apartments with a gross area of 160 sqms, served by amenities like a swimming pool, fully equipped gym, a club house and 24 hour CCTV surveillance.
Completed last month, the Fund expects to earn about Ugx 26 billion in revenue from sale of the 40 apartments at a cost of Ugx 650 million each.
Speaking at the unveiling of the project, NSSF Managing Director Richard Byarugaba revealed that 21 units have so far been booked and 2 are already occupied.
“This is testament that the market for high end real estate exists in Uganda,” he said.
Byarugaba added that the Fund is providing a housing solution for the high, middle and low income earners.
“Our Mbuya project and Lubowa Housing Project currently under development on the Fund’s 600 acres of land in Lubowa comprising of 2,741 housing units will cater for the high income earners. The off taker project in Kyanja completing of 160 units will cater for the second category while our Temangalo affordable housing project comprising of about 5,000 units will cater for the low income earners,” he added.
The Real Estate portfolio makes up 6% of the Fund’s assets under management. Fixed Income and Equities make up the rest at 79% and 15% respectively as at June 30, 2019.
Speaking at the unveiling ceremony, the Minister of State General Duties in the Ministry of Finance, Planning and Economic Development Hon. Gabriel Ajedra Aridru commended the Fund for efficiently extracting value from its Real Estate portfolio.
“Just five years ago, the Fund was struggling to complete any real estate project. You may also recall that Real Estate used to be the Fund’s Achilles Heel. I am delighted because we have seen 3 projects so far completed in the last 2 years. This is tremendous progress,” he said.
In addition to Citadel Place Mbuya, the Fund opened Jinja City House in 2018 and Mbarara City House in July this year. Both are mixed development projects.
He however challenged the Fund to provide a solution for the low end of the market, which would make a significant contribution to reduction of housing deficit in Uganda which currently stands at 2.1M.
“I am cognizant of the fact that the Fund’s investments must create value for the members in form of a competitive return. Nonetheless, it is a reality that majority of NSSF members and Ugandans in general require affordable, decent housing. I am therefore pleased to note that the Fund has committed to addressing the issue of affordable housing,” he said.
“The Fund can indeed play a critical role in providing a solution to this never-ending challenge, because you already have the land, about 2,000 acres of land being considered for development,” he added.
21 units already booked, Ugx 26 billion total revenue expected from project.
