NSSF plans to build a 62-storey tower on its prime land on Kenyatta Avenue, opposite Teleposta in Nairobi, at an estimated cost of Sh20 billion.
It also plans to put up a Sh80 billion residential city in Mavoko.
The National Social Security Fund (NSSF) has lined up Sh100 billion real estate investment projects to be implemented in joint ventures with developers.
The workers’ retirement fund plans to build a 62-storey tower on its prime land on Kenyatta Avenue, opposite Teleposta in Nairobi, at an estimated cost of Sh20 billion.
The NSSF also plans to put up a Sh80 billion residential city in Mavoko, managing trustee Tom Odongo told the Business Daily.
“We are still in discussion with the potential investors and we will be putting in between 10 and 30 per cent of the project cost,” he said Wednesday.
The joint venture arrangement is designed to help NSSF’s investments in real estate to stay below the maximum regulatory limit of 30 per cent of total assets.
“In a joint venture it will not be a property but equity in terms of portfolio classification under RBA (Retirement Regulatory Authority) rules. You have a company XY being the vehicle and you put in your share and the other investors put in their portion,” said Mr Odongo.
The 30 per cent cap on real estate investment is meant to ensure that retirement asset managers have sufficient liquidity to pay claimants in a timely manner.
The 62-storey building will be developed alongside a high-end luxury hotel property incorporating rental apartments.
In Mavoko, the fund owns 960 acres of land valued at about Sh2 billion, on which it aims to build 30,000 housing units, with shopping malls, recreational facilities and schools, creating a self-contained environment.
A similar residential project, the Sh240 billion Tatu City, has stalled for two years due to court cases filed by wrangling partners.
Last week, NSSF commissioned the extension of the Hazina Trade Centre to 39-storeys in a Sh6.7 billion project.
The fund is also setting up 100 apartments in Nairobi’s Milimani Estate at a cost of Sh1.6 billion and another 100 apartments in Kisumu.
NSSF is packaging some of its commercial property into real estate investment trusts in order to unlock some of its capital. Currently, the fund holds property estimated at Sh33 billion, being 26 per cent of its Sh126 billion fund.
Properties identified by the fund for trading at the securities exchange include Bruce House, the NSSF Complex block A, B, C and the parking silo both in Nairobi and the Social Security House in Mombasa.
