Sh359.b for grabs at Private Sector Foundation Uganda (PSFU)

Feb 06, 2017

The chairman of Private Sector Foundation Uganda (PSFU), Patrick Bitature, has called on potential investors to take advantage of $100,000m (about sh359.8b) available at the Foundation for grabs.

He said those interested should do due diligence to their business plans before running to the Foundation for capital.

Bitature who is also the chairman of Umeme was speaking during the property investment symposium in Kampala.The symposium which attracted top managers from pension fund institutions in the country was organized by PineBridge Investments.​

 avid akyiku centre managing partner of sigma apital talks to participants during the investments property symposium at rotea otel in ampala hoto by rancis morut David Wakyiku (centre) managing partner of Asigma Capital talks to participants during the investments property symposium at Protea Hotel in Kampala. Photo by Francis Emorut

 

"People can't get out of poverty without creating jobs and not petty ones and yet there is money which can be invested for example in pull houses," Bitature said in reference to the money available for investment.

He advised potential investors not to fear risks associated with business and even when they make losses they should not get discouraged. "When you make one loss don't get discouraged. Position yourself and use your common sense and surround yourself with smart people. Don't give up in investment," he said.

"Real estate is untapped area. If the risks are high returns are higher." He pointed out that capital can be obtained from ones savings earned through hard work and through borrowing and not participating in lotteries.

Jonathan Stichbury the chief executive officer of PineBridge Investments told participants that there are a lot of opportunities in real estate investment.He argued that there is increase in interest of property in the region and therefore, need to diversify.

David Wakyiku, the managing partner of Sigma Capital informed participants that institutional investors should consider leveraging the operational experience of local real estate developers to limit downside risk while maximizing possible profit.

He encouraged investors to embrace business models such as build and sell, build to suit and build, operate and transfer. Participants however, were concerned that the real estate business has been affected by financial distress and wondered whether it would be profitable to inject more money in the sector.

"Now is the best time to enter into real estate market because of distressed prices," Wakyiku said in response to the participants concerns. He explained that in long run the returns would be higher.

 

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