Stanbic subsidiaries in tripartite pact with National Housing company to develop real estate

December 1, 2021 in Companies, Finance, Financial Services, Infrastructure, Investment, Real Estate & Property by Editor

Juuko chats with Kasaija at the official signing and in her remarks said good housing drives access to basic services and contributes towards inclusive growth while also supporting the development of a sustainable future.

The National Housing and Construction Company Limited (NHCCL), Stanbic Properties Limited, and Stanbic Bank Uganda early this week announced a tripartite partnership to develop and facilitate Ugandans to access affordable modern housing.

Under the terms of the partnership, NHCCL will provide land to develop affordable modern housing while Stanbic Properties will handle the direct sales and marketing with Stanbic Bank playing the role of financing partner. However no financial details were disclosed.

The official signing was witnessed by finance minister, Matia Kasaija at the ministry headquarters in Kampala. Anne Juuko, the Stanbic Bank Uganda Chief Executive said the bank, which is Uganda’s largest commercial lender, agrees with experts that, ‘while housing is well articulated in Target 11 of the Sustainable Development Goals (SDGs), it is a key component of sustainable development across all of the goals.’

She said, “We agree with the view that good housing drives access to basic services, contributes towards inclusive growth, and supports the development of a sustainable future, with a direct impact on the factors that contribute or mediate the effects of climate change; through this partnership, Stanbic Bank hopes to play its role towards the desired goal.”

Both Stanbic Bank and Stanbic Properties are subsidiaries of Stanbic Uganda Holdings Limited (SUHL), under the Standard Bank Group, Africa’s largest commercial bank. The Uganda government holds a majority stake in NHCCL.

Under the partnership, at least 1,400 tailor-made housing units will be developed, targeting Stanbic Bank employees after which offers will be extended to other corporate entities, public and the business community.

Engineer Kenneth Kaijuka, the NHCCL Chief Executive Officer said while undertaking the company mandate of developing affordable housing, issues of inadequate funding for projects as well as insufficient and untimely project off-taking framework has hindered delivery on this mandate.

He said, “Informed by the great strengths and our respective mandates each party represents, we have agreed to join hands under this tripartite framework to champion mutually beneficial collaborative initiatives that will address the above underlying challenges ultimately increasing housing stock, market the existing NHCC stock, customize housing products for bank staff and other clients, under tailor made schemes,” he said.

Spencer Sabiiti, the Chief Executive of Stanbic Properties Uganda Limited said, “Our mission is to get all actors in the property space to collaborate to ultimately increase the supply of authentically affordable housing, but also ease access to affordable long-term finance; this partnership starts us off in the right direction as we have both a developer and financier, both leaders in their respective spaces.”