Real Estate developers demand government support

by SAMUEL NABWIISO

Real estate Developers in Uganda have asked the Government to support them to access cheap financing from both local and international  financial Institutions if their sector is to develop.

They argue that they have many projects that have failed to kick off due to failure to access cheap loans.

 Speaking during the ground breaking for the construction of multibillion Arena shopping mall in Kampala, Charles Odere the Local sponsor of the mall said it has took them more than 4years to access cheap loans to finance the US$20 Million project.

“Some of the projects require a lot of resources and our local banks cannot afford to finance such mega projects.

“That is why most developers are applying for finance  from International Institution but to secure such funds it’s not easy that is why we need government support by guaranteeing us to access these funds in order to execute the Real estate’s projects,” Odere said.

Odere the Local Investors inthe project wants Government to support  real estates Investor 

 Odere noted that there’s high demand for conducive business spaces due to the increasing influx of Asian businessmen and women like Indians and Chinese’s but the available spaces are not enough which has led mall and arcade owners to hike rental charges.

Uganda’s Minister of Trade,  Industry and Cooperatives Amelia Kyambadde said  developers should embrace the spirit of joint ventures businesses.  She said it’s the way they will manage to solve some of the challenges  facing the sector.

“Yes there’s need for government to support real estate’s developer because they facilitate trade through offering rental space but Government is also facing the same problem of accessing finance to finance its programs.

“if you form joint  ventures businesses, you can access cheap loans from the financial Institutions without government hand” she said.

The Minister used the occasion to warn Landlords especially those in the Central Business District against over charging the business community which she said it has a negative impact on peoples’ businesses especially the small and Medium Enterprises .

 “At the Ministry we receive over 100 complaints monthly  from the business communities complaining about rental charges. Some developers are even charging in foreign currency which increases the cost of doing Business,”  she explained

Minister of Trade, Industry and Cooperatives, Amelia Kyambadde with representatives from STANLIB, Knight Frank, Chestnut Uganda and project managers at the Sod Turning of Arena Mall, a 14,000 square meter shopping center development in Nsambya, Kampala

The Arena Mall is owned and developed by partnership between STANLIB Africa Direct property Development Fund and Local   Real Estate Developer Investor Charles Odere . The Nsambya based Arena is seated at 5 Acres of Land which the  Developer secured from Uganda Land commission on 99 years lease basis.

The Arena mall will be Kampala’s first   environmentally sustainable building and will have a4-star rating by the Green Building Council of South Africa.

STANLIB Senior Principal Nnema Byrd said investing in the project will not only provide space for rental but also create jobs to thousands of  Ugandans especially the Youth.

 The construction of the multibillion Arena Mall is expected to last for the period of 22 Months and it will be constructed by Seyan Brothers Uganda Limited and managed by  Knight Frank as the leading Property Managers.