The National Social Security Fund (NSSF) yesterday officially opened Mbarara City House, a modern retail and office complex comprising of four floors in Mbarara town.
Hon Chris Baryomunsi who represented the Prime Minister, presided over the grand opening.
“Mbarara City House is a milestone for the Fund, because it is yet another step towards the realization of our Real Estate strategy, focused on creating value for our members through constructing commercial buildings and housing estates in major towns of Uganda. Projects such as these enable us give our members a reasonable and consistent return, while preserving their savings, paying them an annual return which is 2% above the ten-year inflation,” said Richard Byarugaba, Managing Director, NSSF.
The Fund’s Fixed Income investments stand at 79% of total assets, whilst equity and real estate follow at 15% and 6% respectively.
The modern complex, valued at UGX3.9 billion, with a total built-up area of approximately 1,500 m² and parking capacity of up to 40 vehicles, is the Fund’s second real estate development outside Kampala and will be affordably priced to provide modern commercial real estate space to let.
Speaking at the opening, the State Minister for Lands Hon Chris Baryomunsi, commended NSSF for the investment which will give a facelift to Mbarara town and provide a serene neighborhood for organizational offices.
“Projects such as these contribute to infrastructural development within the country and also support the national development agenda. With such investments, NSSF earns more money which makes it possible for the Fund to continue giving good value to members and improving lives as we work towards meeting the Millennium Development Goals”, said Hon. Chris Baryomunsi
The National Social Security Fund in pursuing its purpose to provide retirement benefits to its members undertakes developments in the real estate sector as a way of hedging against inflation. The real estate sector has been allocated a long term strategic asset allocation of 15% to 25%.
“Real estate allocation is currently at 14% and re-balancing of the Fund’s Investment Portfolio to the stipulated guidelines of 15% – 25% is being undertaken within a 5-year period. Ultimately, this calls for growth in the real estate allocation through permissible investments in income generating commercial and residential properties located in major Ugandan cities or major towns,” Byarugaba added.