Old Mutual’s Tunga Real Estate Fund has provided funding towards the development of over 810 low-cost houses around the country in the past six months.
This comes as it announced on Tuesday that it was funding the development of an initial 224 serviced erven and affordable houses in Mariental, with a further sub-division currently underway, which will produce 105 additional plots.
Currently 307 houses are being developed in Kaisosi, Rundu and 180-units in KwaNkomo housing project in Kuisebmund, Walvis Bay by the unlisted investment manager.
“The first phase of land servicing for 56 residential erven has been completed, with the infrastructure and services have been handed over to the Mariental Municipality. Sales have commenced and the homes have been completed. A further sub-division is underway which will produce 105 additional plots with more affordable serviced land available at lower overall purchase prices. Future phases and development will include walk-ups, offices and retail outlets, a solar farm, school, and a clinic,” the company said.
The development, according to Old Mutual, consists of modern two and three bedroomed homes across 12 design options with buyers being able to decide on acquisition (plot and plan) what size home and the level of finishes they require, with a Home-Owners Association (HOA) also in place.
The investment forms part of Old Mutual Namibia’s unlisted property strategy targeted at the deployment of institutional funds in housing development projects to address the prevalent shortage of affordable housing opportunities across the country.
“This project is testament to our ability to raise institutional funds from some of Namibia’s leading institutional investors for deployment in projects that address Namibia’s most critical developmental needs, while still delivering commensurate returns for investors. Investors, principally representing pension fund members and policyholders, will benefit from positive returns and tangible investments in communities across the country,” said Lionel Kannemeyer, Managing Director for the Old Mutual Investment Group.
The project is being developed by Dynamo Property Developers.
Old Mutual Namibia, through its Alternative Investment funds, manages a range of funds on behalf of the Old Mutual group and third-party institutional investors targeting private equity, unlisted property, and infrastructure investments.
