The Government Institutions Pension Fund (GIPF) says it has financially contributed towards the servicing of over 5,591 erven and construction of over 6,582 housing units across the country over the past 10 years, the bulk of which is in the affordable housing category.
“The Phase 1 funding for Ausblick consisting of 98 single residential erven is a welcome addition which will bring the total land servicing to 5,689 plots. It is our resolve as a Fund to remain active contributors to the housing provision pillar under the Harambee Prosperity Plan. GIPF is committed to funding the real economy within Namibia, of which bulk infrastructure for land servicing is an integral investment for socio-economic impact.,” GIPF CEO and Principal Officer David Nuyoma said during the launch of the Ausblick Extension 1.
The country’s biggest pension fund has achieved its property investments through funds allocated to its unlisted investment managers.
“The private markets allocations at GIPF are termed alternative investments and consist of unlisted investments in real assets like property and infrastructure; equities and debt into businesses. Mandates for funding the construction of residential top structures and bulk services require a certain level of pre-sales for downside protection. The allocations to residential property are part of a larger diversified property exposure with bulk services competing with other economic infrastructure,” Nuyoma said.
He said the realisation of the Ausblick project, had been achieved through risk sharing amongst investors such as the Development Bank of Namibia (DBN) on the debt side and Mergence, one of its unlisted fund managers, with equity.
“These mandates must meet the minimum investment objective of commensurate risk-adjusted returns, whilst achieving socio-economic impact. Transactions of this nature endure for up to 48 months with IRRs in their mid-teens. So not only are they impactful but they contribute positively to our investment objectives, giving impetus to our catalytic funding model at GIPF. The transaction is also a public private partnership with the City of Windhoek, allowing for accelerated development. Transactions of this kind have high multiplier effects for job creation and money circulation.,” Nuyoma said.
The Auasblick Extension 1 which will connect Auasblick and Avis and deliver 230 serviced erf,is a Public Private Partnership (PPP) between City of Windhoek and Sinco, which is a Hangala Group majority-owned company.
The GIPF and DBF financed the project to the tune of N$130 million.
Recent notable developments within Windhoek funded through GIPF’s various fund managers over the past 4 years, include: Rocky Crest extension 4 comprising of 231 single residential plots, 19 general residential plots, 22 business plots and 2 institutional plots; Thorn Valley near Elisenheim comprising of 77 plots; Hosea Kutako Apartments comprising of 48 units; Riverport apartments comprising of 93 units; Otjomuise Extension 10 comprising of 71 units; Otjomuise Lifestyle Estate comprising of 374 rental units, and 324 units still to be constructed; Jedija Apartments in Kleine Kuppe comprising of 60 units; ERF 1470 Khomasdal comprising of 234 units; Khomasdal extension 16 comprising of 432 rental units and Sturrock Windhoek North comprising of 26 units.
