GIPF confident housing scheme will succeed

01 February 2019 | Infrastructure

?



The Government Institutions Pension Fund is confident that its investment in housing will succeed.

The GIPF has invested N$1.38 billion in housing projects, N$600 million in financing for affordable housing and N$779 million in financing housing for all income groups.

Following its ill-fated N$600 million investment in the Development Capital Portfolio, the fund is determined not to repeat its earlier mistakes.

Its general manager for investments, Conville Britz, says the fund has worked out a mitigation plan to minimise losses.

He explains that the GIPF did not directly invest in housing projects but did it through property specialists.

“All our residential property exposure is held through mandates awarded to property specialists. These mandates dictate broad investment guidelines pertaining to investment restrictions, required risk and return profile, value addition strategies and risk management,” Britz says.

“All transactions come with conditions precedent to ensure the mitigation of risks; these typically encompass certain formalities, due diligence and pre-sales levels.”

According to him, performance indicators are set for fund managers to achieve, which are monitored throughout the life of these mandates. “These mandates run for ten-year periods, providing for sufficient time to add value to projects and exit them profitably,” he says. In instances were investments in property do not fare well, fund managers' performance share would also decrease.

“In the event that after such a rigorous process a particular residential development does not yield results within the timeframe of the mandate, it would result in the overall residential portfolio within a given mandate not returning the profits required, reducing the extent to which the fund manager can share in performance fees,” Britz explains.

“Such a development could either be sold at a discount as a distressed sale or then be carried over into a direct portfolio in the GIPF name to allow it time for any market corrections. It is rather unlikely for a residential development to perform so poorly that we don't recoup the cost of our investment,” Britz said.

Asked whether the GIPF envisaged investing in more housing projects, Britz said a total of N$600 million had been set aside for fund managers.

“GIPF awarded affordable housing mandates to the tune of N$600 million during 2018; these are running for a ten-year period. These affordable housing mandates are open for funding new developments that meet the criteria of affordability by households with a minimum joint income of N$30 000 which would translate to residential units amounting to a maximum of N$900 000 inclusive of land,” Britz says.

Similar News

 

Securing a long-term future

1 month - 14 December 2021 | Infrastructure

Namdeb’s Long-Term Plan was formulated with the objective of developing a robust, recapitalised, profitable and sustainable businesssolution to secure a long-term future and the continued...

Building Namibia our own way

1 month - 24 November 2021 | Infrastructure

Yochanaan Coetzee Namibia’s housing backlog is estimated to be at 300 000 units, with 84 000 of that occurring just in Windhoek. The...

Ongos Connect, Paratus sign smart deal

2 months ago - 17 November 2021 | Infrastructure

STAFF REPORTERWINDHOEKParatus Namibia and Ongos Connect last week signed a commercial connectivity agreement, confirming that Paratus will be the technology / infrastructure partner to bring...

Water interruptions plague northern Namibia

2 months ago - 17 November 2021 | Infrastructure

ESTER KAMATIWINDHOEKA water shortage has been reported at villages in the Omusati, Oshikoto and Ohangwena regions, mainly those at the end of the water supply...

Experience the dream at Droombos

2 months ago - 27 October 2021 | Infrastructure

A flair for the unforgettableWith exquisite cuisine, elegant decor and personalised attention, the Droombos Estate sets a new standard for hospitality in Namibia.Mirinda van der...

Road from Okahandja to Ovitoto tarred

3 months ago - 13 October 2021 | Infrastructure

ENZO AMUELEWINDHOEKA 41-kilometre stretch of the Ovitoto road was inaugurated last week, completing phase one of the project.It includes more than 30 culverts to accommodate...

Safland – Namibia: Driven by a desire to develop

3 months ago - 29 September 2021 | Infrastructure

Yochanaan CoetzeeSafland - Namibia Property Group is arguably one of largest and most diversified players in the local property industry. Having been involved in the...

Billions needed to develop water sector

5 months ago - 18 August 2021 | Infrastructure

ELLANIE SMITWINDHOEKA massive N$8.31 billion will be pumped into Namibia's water sector over the next seven years.These funds will be used for - among other...

Witel Namibia adds STM-16 international internet capacity

5 months ago - 13 August 2021 | Infrastructure

Sponsored ContentWitel Service Provider, a tier 1 internet service provider operating in Namibia, has just announced that they have boosted their existing international capacity by...

NHE hands over 131 houses in Okuryangava

5 months ago - 30 July 2021 | Infrastructure

Michelline NawatisesThe National Housing Enterprise (NHE), in collaboration with the City of Windhoek, the ministry of urban and rural development and the Khomas Regional Council,...

Latest News

N$8.8 billion gained in export...

1 day - 21 January 2022 | Economics

PHILLEPUS UUSIKUNamibia gained about N$8.8 billion in exports earnings in November 2021, an increase of 1.3% when compared to N$8.7 billion recorded in October 2021....

NISS records settlement value...

1 day - 21 January 2022 | Economics

PHILLEPUS UUSIKUDue to high volumes of the new domestic electronic funds transfer (EFT) system streams, utilisation of the lending facilities, the purchase and resell of...

In the jaws of justice

1 day - 21 January 2022 | Justice

ELLANIE SMIT, JANA-MARI SMITH, MATHIAS HAUFIKU AND OGONE TLHAGE · Esau spent N$900k from undeclared account while...

Working with high standards of...

1 day - 21 January 2022 | People

Wetumwene Shikage Not expecting to find a smooth and easy way of work, Romario Arnat describes his working experience as an eye-opener as to how...

Taking steady growing curves

1 day - 21 January 2022 | People

Wetumwene Shikage Timothy Olivier’s passion and dedication has been a key driver in his success not only within Old Mutual, but throughout his...

US sanctions strangling Zim economy...

1 day - 21 January 2022 | Economics

FANUEL JONGWECallisto Jokonya stands in the cavernous factory of Imperial Refrigeration and recalls the halcyon days. In the 1990s, his factory, located in the Zimbabwean...

UK inflation pushes cost of...

1 day - 21 January 2022 | Economics

ROLAND JACKSONThe annual rate of inflation in Britain rose to a near 30-year high in December, official data showed Wednesday, stoking fears about a cost-of-living...

Malpass urges Microsoft to help...

1 day - 21 January 2022 | Economics

After Microsoft announced it would spend tens of billions of dollars to buy a video game company, World Bank President David Malpass on Wednesday drew...

I’m not politicking with housing...

1 day - 21 January 2022 | Politics

NAMPA WINDHOEKThe housing crisis in Namibia is beyond politics and could lead to a civil war if not addressed in an...

Load More