Buganda, Chinese company sign MoU to develop housing units
Posted Friday, February 7 2014 at 02:00
Committed. Company set to invest more than Shs247 billion in Uganda’s real estate.
Buganda Kingdom has signed a memorandum of understanding with Henan Guoji Industry Group Limited, a Chinese company, to develop a mid-low income real estate.
Through its investment holding company, Buganda Investments and Commercial Undertakings Limited (BICUL) and Henan Guoji partnership, the Kingdom wants to see the country’s housing deficit reduce.
In an interview with the Daily Monitor, BICUL chief executive officer Roland Sebuwufu said: “There is still high demand for housing in the mid –low income bracket especially in the Central Business Districts, but the uptake was slow because of the high costs of the finished products yet the lending rate on mortgages is still high.”
He added that the kingdom wants to partner with serious investors to provide solutions that would benefit not only the Buganda, but also contribute to the economic development of the country.
Henan Guoji is among the top 50 companies with AAA Credit Class classification in national construction in China and has already set presence in Sierra Leone, Zimbabwe, Mozambique, Zambia, Malawi and Guinea.
Mr Zhang Chao, the company’s managing director, expressed his company’s readiness to invest more than $100 million (about Shs247 billion) in Uganda in real estate development and engineering construction.
“We have a unique model that not only provides housing but also facilitates the buyers to access cheaper financing through a local bank, to which end he revealed that negotiations are underway,” he said.