Housing Finance Bank has inked a deal with Buganda Kingdom with the aim of providing affordable housing to Housing Finance Bank-Buganda Kingdom Sentema Estates deal: All you need to know.
A leading financial institution in offering housing solutions, the bank says the partnership with Mengo is part of its sustained efforts to enable ‘home ownership and financial independence.’
Housing Finance Bank chose Buganda Kingdom because of the cultural institution’s capacity and interest in real estate of Mirembe Villas.
According to a Memorandum of Understanding (MOU) Housing Finance Bank signed with Buganda Kingdom, some 400 housing units on 50 acres of land in Sentema, some 13 kilometers away from the Kampala Northern By-Pass.
The units will range from one-bedroom to three-bedroom.
The project will also see a vocational school erected on 10 acres, an industrial park on 50 acres as well as restaurants, a shopping mall, a clinic and other recreational facilities.
Chinese developer Guoji Group, famous for their work on Mirembe Villas Kigo, will undertake construction of the project.
During the MoU signing at Bulange, Mengo in Kampala on January 28, Guoji Group Managing Director Windy Sheng noted that the firm had ammased a wealth of experience from Mirembe Villas Kigo project regarding affordable housing.
Sheng added that affordability wouldn’t mean lack of class for the Sentema estate dwellers.
It would be luxurious, the MD assured.
A one-bedroom house will cost Shs58m, a two-bedroom one at Shs95m, and a three-bedroom at Shs135m.
Uganda’s housing deficit stands at 2.5 million units.
To help clients pay for houses in Sentema estate, Housing Finance Bank will offer mortgages payable in a space of 10 years.
Official government figures indicate the deficit increases by an additional 250,000 units.
Both Housing Finance Bank Managing Director and Buganda Kingdom Prime Minister Katikkiro Charles Peter Mayiga agreed such partnerships were a right step in the right direction in as far as dealing this deficit a blow is concerned.
The deficit also means opportunities for investment.
“Uganda’s population is growing very fast and synergies, such as a deal with Buganda kingdom, make it possible to close the housing deficit,” said MD Mugabi.
“The housing value chain is long and there are many opportunities to remove impediments for investors and customers in the property business.”