The real estate project will cost an estimated $400m (about 1.4 trillion) over a 10-year period and will be developed on the Fund’s 565 acres of land along Entebbe Road
PIC: NSSF Managing Director Richard Byarugaba (fourth-left) and the Minister of Finance Matia Kasaija (second-right) break ground for the NSSF Lubowa housing Project
NSSF | HOUSING
The National Social Security Fund (NSSF) is set to announce its annual interest on savings at the annual members meeting at the Kampala Serena this Thursday.
Under the NSSF Act, interest on members’ savings is supposed to be announced before the month of October. Last Year, NSSF gave a 12.3% return on members’ savings.
Yesterday, the fund broke ground on the construction of 2,740 housing units in Lubowa, Wakiso district.
The real estate project will cost an estimated $400m (about 1.4 trillion) over a 10-year period and will be developed on the Fund’s 565 acres of land along Entebbe Road. Once completed, it will be one of the most upmarket housing estates in Uganda.
Speaking at the breaking of the ground ceremony in Lubowa, Richard Byarugaba, the NSSF managing director, said the Lubowa Housing Estate is in response to demand for quality housing for Uganda’s middle and first class and as an investment opportunity that will deliver competitive returns on members’ savings.
Byarugaba said the Fund will make an initial investment for Phase I, after which the project is expected to be self-financing with projection to complete the first phase in one year.
The development will have retail and office space, school, hospital, leisure and commercial areas, police post, fire stations and places of worship, a central Park and a plantation Garden Park, creating a desirable environment for the residents.
He also noted that once complete, the houses will be sold on the open market to both the Fund members and the general public. However, priority will be given to the members and will be sold at prevailing market rates at the time of completion of the project.
Addressing the press at the same event, Matia Kasaija, the minister of finance, who was the guest of honour, commended NSSF upon commencement of the landmark project and investing in a robust housing market which is in line with Government’s plan to provide decent housing for Ugandans.
“This is a well thought out and well-planned housing estate that meets high standards of urban planning and it ensures Ugandans will have quality housing. Well-planned housing projects such as these will contribute greatly to the transformation of our country,” he said.
The Board Chairman, Patrick Byabakama Kaberenge, said the fund’s real estate strategy going forward will focus on low cost housing, which will target a significant number of NSSF savers.
The planned affordable housing projects include off taker projects in and around Kampala, 5,000 housing units project at Temangalo, Wakiso and a planned estate in Nsimbe land, which the Fund recently redeemed back and acquired in totality.
The fund’s other key real estate investments include, the sh15.5b Mbuya housing project, the sh3.3b Jinja commercial complex in Jinja, the upcoming Mbarara commercial complex, Workers House, Social Security House and Pension Towers.
NSSF, which currently boosts sh7 trillion in assets, also increased its stake in Umeme to 23%, up from 15% by making an additional investment of about sh59.4b and is also the largest institutional investor on the Uganda Securities Exchange.
The Lubowa Housing estate will also address the current challenge of housing deficit in the country.