Private businesses avail condominium deals to the public
Mar 31, 2006
WAHT would you do when faced with money shortage, yet you have property with you in form of a big building? Would you sell off the entire building or would you use it as collateral in a bank loan deal?
By Jude Katende
WAHT would you do when faced with money shortage, yet you have property with you in form of a big building? Would you sell off the entire building or would you use it as collateral in a bank loan deal?
For wise property moguls like the Consul of Pakistan and Kampala businessman, Boney Katatumba, there is a better way to solving your cash crisis while your property remains intact. He says, you lease off some or all of your rooms for a specified period and use the money for other purposes.
Katatumba is upgrading his former Blacklines House, now Katatumba Suites, in preparation for the Commonwealth Summit. The Colville Street four-storied building will have two floors comprising of 30 units being added onto 60 units. Another eight-storey building of 46 units will be built in the parking space of the old structure to raise the number to 136.
The units will serve as offices, apartments, restaurants, shops and an underground parking provision for 56 cars.
China Civil Engineering Corporation beat four other companies to the $4m (about sh7.2b) project, which will be the first of its kind in Kampala.
Like mayor Ssebaana Kizito said, it is going to revolutionalise the property industry in Uganda. When complete, presumably in six months time, tenants will own the apartments for 60 years. The lessee will not have to pay rent, but if they choose to sell or sublease their apartment(s) to willing buyers before the lease period expires, it’s okay.
“It’s like a plot above another plot, the difference here is that each plot comprises of two rooms or offices,†Katatumba asserts. He says one unit, which is approximately 35square metres, costs $75,000 (about 136m) for the 60-year period. Tenants can pay cash or pay through Housing Finance or dfcu banks with which management has an arrangement.
Katatumba, who along with the board of directors, owns and manages the complex, said this new system of leasing apartments would help many potential investors and people who would want to own property, but are short of funds. Even before construction, the building already has 136 titles with some plots sold and others booked.
“It’s an opportunity for people to own premises in Kampala at a low cost. If I wanted to borrow money from the bank, I use one plot as collateral instead of staking the entire building,†Katatumba explains.
“Nobody has a condominium system like ours. In the end, this building will be co-owned by Katatumba and many other people for 60 years. If one were to become broke say after five years, they could sell off the equivalent of 55 years.â€
Katatumba bought this building in the mid-80s from the Nairobi-based East African Insurance Company. Co-owning the building means it can help settle family disputes in case the old man passed away.
The relatives can sell or hire out some plots instead of selling the entire building to clear a debt. Katatumba’s family of nine is a beneficiary with all the daughters and sons owning plots.
Katatumba said, the board was expanded to include members outside his family for stability and continuity of the group. The existing building has six floors and 71 apartments. Its facilities include 15 self-contained rooms. The kitchen has cutlery, electric appliances among other things. These rooms go for $50 (about sh91,250) a night.
Soon, Hotel Diplomate and Banda Island resort will also have a similar arrangement. One can co-own the hotel. Once one buys a room and he goes, say abroad, they could have it hired out say at $30 (about sh54,750) a night. The resort’s 100 acres will be subdivided to create 200 plots.
WAHT would you do when faced with money shortage, yet you have property with you in form of a big building? Would you sell off the entire building or would you use it as collateral in a bank loan deal?
For wise property moguls like the Consul of Pakistan and Kampala businessman, Boney Katatumba, there is a better way to solving your cash crisis while your property remains intact. He says, you lease off some or all of your rooms for a specified period and use the money for other purposes.
Katatumba is upgrading his former Blacklines House, now Katatumba Suites, in preparation for the Commonwealth Summit. The Colville Street four-storied building will have two floors comprising of 30 units being added onto 60 units. Another eight-storey building of 46 units will be built in the parking space of the old structure to raise the number to 136.
The units will serve as offices, apartments, restaurants, shops and an underground parking provision for 56 cars.
China Civil Engineering Corporation beat four other companies to the $4m (about sh7.2b) project, which will be the first of its kind in Kampala.
Like mayor Ssebaana Kizito said, it is going to revolutionalise the property industry in Uganda. When complete, presumably in six months time, tenants will own the apartments for 60 years. The lessee will not have to pay rent, but if they choose to sell or sublease their apartment(s) to willing buyers before the lease period expires, it’s okay.
“It’s like a plot above another plot, the difference here is that each plot comprises of two rooms or offices,†Katatumba asserts. He says one unit, which is approximately 35square metres, costs $75,000 (about 136m) for the 60-year period. Tenants can pay cash or pay through Housing Finance or dfcu banks with which management has an arrangement.
Katatumba, who along with the board of directors, owns and manages the complex, said this new system of leasing apartments would help many potential investors and people who would want to own property, but are short of funds. Even before construction, the building already has 136 titles with some plots sold and others booked.
“It’s an opportunity for people to own premises in Kampala at a low cost. If I wanted to borrow money from the bank, I use one plot as collateral instead of staking the entire building,†Katatumba explains.
“Nobody has a condominium system like ours. In the end, this building will be co-owned by Katatumba and many other people for 60 years. If one were to become broke say after five years, they could sell off the equivalent of 55 years.â€
Katatumba bought this building in the mid-80s from the Nairobi-based East African Insurance Company. Co-owning the building means it can help settle family disputes in case the old man passed away.
The relatives can sell or hire out some plots instead of selling the entire building to clear a debt. Katatumba’s family of nine is a beneficiary with all the daughters and sons owning plots.
Katatumba said, the board was expanded to include members outside his family for stability and continuity of the group. The existing building has six floors and 71 apartments. Its facilities include 15 self-contained rooms. The kitchen has cutlery, electric appliances among other things. These rooms go for $50 (about sh91,250) a night.
Soon, Hotel Diplomate and Banda Island resort will also have a similar arrangement. One can co-own the hotel. Once one buys a room and he goes, say abroad, they could have it hired out say at $30 (about sh54,750) a night. The resort’s 100 acres will be subdivided to create 200 plots.