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UK-UGANDA BUSINES FORUM

UK-UGANDA BUSINES FORUM. REAL ESTATE INVESTMENT OPPORTUNITIES May 2014 Daudi Migereko (M.P.) Minister of Lands, Housing and Urban Development- UGANDA Website. www.mlhud.go.ug. INTRODUCTION.

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UK-UGANDA BUSINES FORUM

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  1. UK-UGANDA BUSINES FORUM REAL ESTATE INVESTMENT OPPORTUNITIES May 2014 Daudi Migereko (M.P.) Minister of Lands, Housing and Urban Development- UGANDA Website. www.mlhud.go.ug

  2. INTRODUCTION • Uganda’s population stands at approx. 35 million people growing at a rate of 3.2% p.a with an urbanization rate of approx. 5.2% p.a. • The current housing deficit stands at approx. 1.6 million housing units. • The required investment in real estate will address the shortfall in housing stock and the deteriorating housing conditions in urban centres

  3. OPPORTUNITIES IN REAL ESTATE DEVELOPMENT IN UGANDA

  4. GOVERNMENT’S COMMITMENT • Government supports investments to the sector is in line with Vision 2040, National Devt Plan and the NRM manifesto 2011/16, by way of; • Providing enabling policies laws, and regulations to facilitate investments in the sector • Securing Land rights & Security of tenure for investors and individuals • Providing funds for physical and social infrastructure • Providing tax incentives for construction equipment for the sector • Providing serviced Land for big investments (Thru UIA,ULC,DLBs), and facilitates negotiations with private Land owners

  5. INVESTMENT OPPORTUNITIES • Real Estate is one of the fastest growing sectors in Uganda contributing approx.5% with potential to grow up to 30% of the National GDP. • Enhanced performance of the economy has created effective demand for real estate products and need for high density high rise in well planned and maintained areas • Key domestic players include • NHCC,Jomayi, Canaansites,Akright,Hossana, Sema Properties,Meera Investments etc • Foreign Players include: • Opec Prime, Arab Contractors, Chinese Firms

  6. INVESTMENT OPPORTUNITIES • The Ministry of Lands, Housing and Urban Development in partnership with NHCC has developed several housing projects . The major ones proposed in the medium term include; • Public Service Housing for Public Servants both Institutional and for Direct sale to Public through Public Private Partnership (PPP) • The slum redevelopment projects i.e, Kasooli in Tororo, Kireka near Kampala and others to follow • These projects need partners to contribute funds, appropriate technology and enterprise

  7. THE PUBLIC SERVICE INSTITUTIONAL HOUSING PROJECT

  8. INSTITUTIONAL HOUSING FOR MEDICAL WORKERS AND TEACHERS • Mulago doctors village for doctors and medical workers-40 acres to build about 2500 housing units and commercial complex • Teachers houses to be built at various sites and schools will provide Land. i.e Old Kampala 6 acres available. • The Direct Purchase Housing Scheme for public servants and individuals. Schemes planned for Bukerere , Lubowa and Luzira in partnership with NHCC and relevant Local Goverments

  9. PROPOSED COMMERCIAL COMPLEX THAT WILL BE BUILT AT MULAGO

  10. PROPOSED INSTITUIONAL HOUSING DESIGNS MULAGO AND KAMPALA PROJECTS

  11. BUDGET • PLANNED EXPENDITURE: Approx US$ 50M • IMPLEMENTATION PERIOD: 3 YEARS • The Govt is looking for international developers to provide enterprise, funding and appropriate technology

  12. EXPECTED IMPACT OF INSTITUTIONAL HOUSING DEVELOPMENTS • Create affordable vibrant and well planned settlements for public servants and individuals • Act as an incentive and motivation for health workers and teachers to provide better services • Contribute to GDP through creation of employment and development of a large number of industries which produce building materials • Development of a vibrant real estates sector

  13. PUBLIC SERVICE HOUSING TO BE BUILT IN SEVEN DISTRICTS –OTHERS TO FOLLOW AT DISTRICT HEADQUARTERS

  14. PROJECT AREAS/BUDGET • The PPP housing projects for sale are proposed to be implemented in the following districts on the basis of regional balance: Arua, Jinja, Kabale, Lira, Mbarara, Ntungamo, and Wakiso, totaling to 6,500 housing units of middle income. • PLANNED EXPENDITURE: US$ 250 M • IMPLEMENTATION PERIOD: 3 YEARS • The Govt is looking for developers to provide enterprise, funding and appropriate technology

  15. THE SLUM REDEVELOPMENT PROJECTS IN KIREKA NEAR KAMPALA, TORORO ETC

  16. BACKGROUND INFORMATION ON KIREKA SLUM AREA NEAR KAMPALA Slums in Uganda are characterized by; • Unplanned development with poor housing facilities sitting on prime lands • Lack of planned and developed infrastructure such as roads, water, sewerage etc • Un health conditions • Widespread urban poverty, • Insecurity, crime etc • Increasing urban sprawl • Traffic congestion • Pollution and inadequate supply of social service .

  17. PROPOSED REDEVELOPMENT OF THE AREA

  18. TOTAL COST OF THE PROJECT • Total Project Cost : US$180 M • The Govt of Uganda is looking for developers/investors to provide enterprise, concessional funding and appropriate construction technology

  19. OPPORTUNTIES BY NATIONAL HOUSING CONCTRUCTION COMPANY (NHCC) • NHCC is the commercial entity with government share holding of 51%. NHCC therefore acts as an off taker of some of government housing projects aimed at providing housing facilities at subsidized rates. • It has a number of projects in pipelines and is looking for development partners to provide funding and alternative technology that is quick to build and affordable. Some of the priority projects are as follows:

  20. BUKERERE MIXED HOUSING ESTATE • Location : Bukerere, Mukono district • Area: 320 acres • Distance : 20km from the city centre • Facilities: 3500 houses of 2 & 3 bedroom bungalows, flats & town houses • Commercial, institutional and recreational facilities. • TOTAL BUDGET- US$ 150M

  21. PROPOSED BUKERERE PROJECT

  22. LUBOWA 80 • Location: Lubowa • Distance: 6km from Kampala on Entebbe road • Area :80 Acres • Facilities: 3 bedrooms middle income houses • Total number of houses 920 plus relevant infrastructure • TOTAL BUDGET: US$ 80 M

  23. PROPOSED LUBOWA HOUSING PROJECT

  24. LUZIRA HOUSING PROJECT • Location: Luzira • Lake view (on shores of L. Victoria) • 3 bedrooms, Master/Bedroom self contained • Dinning/living/parking space • Area: 5.5ACRES • Total number of houses 192 with infrastructure • TOTAL BUDGET: US 13 M

  25. PROPOSED LUZIRA PROJECT

  26. RETURN ON INVESTMENT • Many investors have found investment in real estates sector in Uganda viable and profitable with attractive returns. • Depending on the source and cost of capital, the viability and investment returns can be accurately determined.

  27. CONCLUSION • There are immense numerous new opportunities involving partnerships with institutions, districts, private companies and individuals in real estates development, management and mortage services. • New urban centres are being planned arising out of oil, gas and mineral discoveries plus new sites for power production. These present attractive investiment opportunities

  28. THANK YOU

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