Jinja project starts as Fund gets set to invest Shs 578 bn in 2016
On April 20, the National Social Security Fund (NSSF) held a groundbreaking ceremony for the construction of an ultra-modern commercial building in Jinja town, an event that officially kick starts the Fund’s ambitious agenda to invest more than Shs 578 billion in the country real estate sector.
Chief guest Fred Omach, the State minister for general duties at the Finance ministry, hailed NSSF for investing outside Kampala and spreading opportunities to other parts of the country.
Managing Director Richard Byarugaba said the development was in line with the Fund’s strategy to unlock the value of its real estate investments and accelerate growth. When completed by end of 2017, the four-floor complex will provide 1,500 square meters of space for offices and retail shops.
“This is a significant project for the Fund as it is the first of its kind being undertaken outside Kampala, further underlining the Fund’s commitment to contributing to the economic development of the country at large,” Byarugaba said.
Board Chairman Patrick Kaberenge said one of the board’s key items on the agenda is to ensure that they implement a number of real estate projects that had stalled. “Within six months of assuming office, we have approved a number of real estate projects valued at over Shs 578 billion,” he said.
From an asset base of Shs 6.25 trillion, up to about Shs 4.6 trillion (76%) is held in fixed income securities, Shs 892 billion (16%) in equity investments while only Shs 444 billion (8%) is in real estate. At the end of last year, the Fund unveiled its ten-year strategic plan (2015 – 2025), an ambitious blue print for the Fund’s strategic direction including growing the Fund to Shs 20 trillion in the next ten years by diversifying their investment portfolio and improving compliance.
The other projects under the Fund’s real estate investments portfolio include the Pension Towers – a commercial development project in the heart of Kampala, the high-end end housing project with the 2,741 unit at Lubowa near Kampala, and a 5,000-unit residential housing estate at Temangalo in Wakiso District.