The $400 million Solana Housing project was recently launched by the National Social Security Fund (NSSF) in the Lubowa Wakiso district. The day’s chief guest was the President.
The NSSF claims that the 2,750-unit project, which is made up of mixed-use housing and commercial developments, aims to attract the middle class and upper class. The lowest-priced unit will start at $50,000. The highest-priced unit will go for USD 800,000.
That means that Solana Housing will be an affordable housing development. Recently, the World Bank mentioned that an affordable house should cost between USD50,000 and USD95,000.
A rent-to-own sales model will be used to sell the units of the project. The units can then be purchased, moved into, and rented by the interested buyers. The buyers will be required to put down a 20% down payment.
However, it is unclear how the Fund will find prospective buyers for the residential project. This is because the country has a huge part of the population in the informal sector.
Solana Housing to help diversify the NSSF investment portfolio
Only 7% of the fund’s current investment portfolio is comprised of real estate, with 70% being fixed income and 15% being equities.
The Fund’s managing director, Richard Byarugaba, asserts that they are investing in real estate. This is with an aim to diversify their investment portfolio. It will enable them to get a good return on investment. They also intend to have an impact on the economy by creating employment.
Other properties owned by the fund include Offtaker Project, an affordable housing estate with 160 housing units in Kyanja. They also include Citadel Place, a modern housing project in Mbuya with 40 high-end apartments each.
In addition, the fund owns a number of commercial projects. These include Mbale City House, which is currently under construction, and Pension Towers, a 32-story, modern, and intelligent commercial complex.