TANZANIA DIASPORA FORUM IN LONDON, UNITED KINGDOM TANZANIA DIASPORA FORUM IN LONDON, UNITED KINGDOM

( 18TH APRIL, 2008)( 18TH APRIL, 2008)

INVESTMENT/OPPORTUNITY OF ACQUIRING A HOUSE/FLAT IN INVESTMENT/OPPORTUNITY OF ACQUIRING A HOUSE/FLAT IN

TANZANIA THROUGH NATIONAL HOUSING CORPORATIONTANZANIA THROUGH NATIONAL HOUSING CORPORATION

BACKGROUNDBACKGROUND

�� NHC was established by the Act of NHC was established by the Act of

Parliament No 2 of 1990Parliament No 2 of 1990

�� It is wholly government owned It is wholly government owned

Corporation, that operates commercially.Corporation, that operates commercially.

�� Owns 2534 buildings which Owns 2534 buildings which

accommodates 16,021 tenants.accommodates 16,021 tenants.

�� Has an annual income of TSh 23 billionsHas an annual income of TSh 23 billions

Main FunctionsMain Functions

�� Construction of houses for sale and Construction of houses for sale and letting.letting.

�� Management of existing stockManagement of existing stock

�� Offers consultancy on all issues pertaining Offers consultancy on all issues pertaining to property development.to property development.

�� Undertakes contract works and is Undertakes contract works and is registered as contractor class IIregistered as contractor class II

�� Undertake joint venture projects with Undertake joint venture projects with other investors.other investors.

CONSTRUCTION PROJECTSCONSTRUCTION PROJECTS1.1. Completed projectsCompleted projects

a.a. Houses for saleHouses for sale

�� BokoBoko Project Project --DSMDSM

�� MbeziMbezi Project Project --DSMDSM

�� KijengeKijenge and and MwandamoMwandamo –– ARUSHAARUSHA

�� Capri point and Capri point and IsamiloIsamilo –– MWANZAMWANZA

�� MbweniMbweni J.K.T phase 1 J.K.T phase 1 -- DSMDSM

b. Investment Portfoliob. Investment Portfolio

�� MwananyamalaMwananyamala office block office block –– DSMDSM

�� IlalaIlala Block of flats Block of flats –– DSMDSM

�� KekoKeko Block of flats Block of flats –– DSMDSM

�� MpwapwaMpwapwa Block of flats Block of flats –– DODOMADODOMA

�� Office Blocks Office Blocks –– KIGOMA and MWANZAKIGOMA and MWANZA

�� ChalinzeChalinze Blocks of flats Blocks of flats –– COAST REGIONCOAST REGION

�� 21 joint venture projects 21 joint venture projects –– DSM and KLMDSM and KLM

COMPLETED PROJECTSCOMPLETED PROJECTS

2.ONGOING PROJECTS2.ONGOING PROJECTS

a.a. Houses for saleHouses for saleoo MbweniMbweni J.K.T phase II J.K.T phase II ––DSMDSM

oo KiblaKibla flats flats –– ARUSHAARUSHA

b. Investment Portfoliob. Investment Portfolio

oo IpogoroIpogoro shops shops –– IRINGAIRINGA

oo KiblaKibla shops office shops office –– ARUSHAARUSHA

oo SingidaSingida Motel Motel –– SINGIDASINGIDA

oo 30 joint venture projects 30 joint venture projects –– DSM, ARUSHA DSM, ARUSHA

and MWANZAand MWANZA

oo NHC House NHC House -- DSMDSM

3. PLANNED PROJECTS3. PLANNED PROJECTS

�� MbweniMbweni J.K.T phase III J.K.T phase III –– DSMDSM

�� KibadaKibada Housing Estate Housing Estate –– DSMDSM

�� Block of flats Drive inn Block of flats Drive inn –– DSMDSM

�� Office Block Office Block KariakooKariakoo –– DSMDSM

�� Shops/Office Block Shops/Office Block –– SHINYANGA,TABORA and KIGOMA.SHINYANGA,TABORA and KIGOMA.

�� Joint venture projects Joint venture projects

Why Choose NHC?Why Choose NHC?

�� TrustTrust

�� Long ExperienceLong Experience

�� Good Track RecordGood Track Record

�� Quality HousingQuality Housing

�� Financial stabilityFinancial stability

�� Owns plots in prime locations.Owns plots in prime locations.

How to acquire NHC Built HousesHow to acquire NHC Built Houses

�� Application by a potential buyer.Application by a potential buyer.

��Specifying location, type, size, mode of payments.Specifying location, type, size, mode of payments.

�� NHC will provide information on location, designs, tentative priNHC will provide information on location, designs, tentative pricece

�� Upon the buyersUpon the buyers’’ commitment, NHC will prepare an agreement to commitment, NHC will prepare an agreement to be signed by both parties.be signed by both parties.

�� On completion of construction of the house and full payment by tOn completion of construction of the house and full payment by the he buyerbuyer

��The corporation will hand over the house to the buyerThe corporation will hand over the house to the buyer

��NHC will arrange for the buyer to obtain the title deedNHC will arrange for the buyer to obtain the title deed

�� NHC shall be liable for any construction defects detected withinNHC shall be liable for any construction defects detected within 6 6 months after handing over.months after handing over.

REAL ESTATE INVESTMENTREAL ESTATE INVESTMENT

�� Tanzania is a safe investment destinationTanzania is a safe investment destination

�� Demand for real estate is very highDemand for real estate is very highoo Current shortfall for housing is estimated at 3m units and Current shortfall for housing is estimated at 3m units and

is rising every year.is rising every year.

�� Land is available in all urban areas and Land is available in all urban areas and

investment policy is conducive.investment policy is conducive.

ChallengesChallenges

oo Inadequate mortgage financeInadequate mortgage finance

oo Lack of infrastructure in planned Lack of infrastructure in planned

development sites/areasdevelopment sites/areas

oo Inadequate real estate developersInadequate real estate developers

THE WAY FORWARDTHE WAY FORWARD

�� Call on investors to invest in mortgage Call on investors to invest in mortgage

finance, real estate development and finance, real estate development and

infrastructureinfrastructure

ConclusionConclusion

�� A house is a solid investmentA house is a solid investment

�� NHC is the best vehicle you require for a NHC is the best vehicle you require for a

decent house and the partner you need to decent house and the partner you need to

actualise your investment dream in actualise your investment dream in

housing.housing.