OKAHANDJA: Okahandja Mayor Dawid Uri-Khob says a lack of serviced land for both residential and industrial purposes is one of the challenges faced by that town’s municipality.
Uri-Khob said this on Monday during the opening of 42 sectional title units at the Lemero Court development here.
The construction of the development was funded by Old Mutual’s Managing Infrastructure Development in Namibia (MIDINA) at a cost of N.dollars 10 million.
The development, located near the main road in the Veddersdal residential area, was constructed by Auas Business Enterprises and Ombo Investment.
Uri-Khob said the town has been growing at a fast pace, causing the demand for housing to expand on a daily basis, and causing it to “outnumber” the serviced land in the newly proclaimed extensions.
“Thanks goes to Old Mutual’s MIDINA fund, which realised the need to extend loans to various businesses and individuals in our beloved country. This enables our people and communities to have better housing infrastructures,” he said.
The Okahandja Mayor added that the town is also faced with a challenge of limited funds as the council relies heavily on its own funding to bring about much-needed development.
He urged the prospective tenants of the development to maintain the cleanliness of these apartments and to pay their monthly dues regularly as businesses of this nature are based on a cost-recovery basis.
The townhouses were sold at a cost of N.dollars 335 000 per unit, and the owners are expected to move in as from 01 November this year.
Speaking at the same occasion, Old Mutual Investment Group Namibia (OMIGNAM) Chief Executive Officer Lionel Matthews said the group believes in quality infrastructure as fundamental requirement to ensuring that Namibia meets the Millennium Development Goals (MDGs) and Vision 2030.
“In delivering to this vision, our Old Mutual MIDINA fund provides debt finance primarily to Local Authorities, State-owned wnterprises, and related third-party empowerment entities for infrastructure development projects,” he explained.
Matthews stressed that the fund aims to promote long-term economic and social development in Namibia, whilst offering investors market-related returns.
He added that the MIDINA fund model has a potential role to play in reducing local government service delivery backlogs, because it is a means of enabling municipalities, even those with weaker balance sheets, to ensure quality service delivery through off-balance sheet funding arrangements, in the form of co-development agreements.
Matthews said in line with its investment mandate to bridge the growing gap between the costs of servicing land, and the resources available, to date the Old Mutual MIDINA fund has invested in excess of N.dollars 500 million “to unlock urban land value”.
With the Lemero Court project the value of its property expansion portfolio is steadily increasing, he stated.