Friday, August 4, 2023

NHC to list bond on DSE as profit surges

TANZANIA, Dar es Salaam: THE National Housing Corporation (NHC) will for the first time in history list its bond on the stock market, with the company disclosing that it has

recorded a significant rise in revenue and profit.

The company’s revenue soared to 257.5bn/- in the financial year 2021/22 up from 144.4bn/- in 2020/21, equivalent to 78.3 per cent rise. NHC saw its profit rising to 60.7bn/- up from 31.7bn/-, equivalent to a 91.5 per cent increase during the period.

“Within a period of one year we are going to issue the bond on the Dar es Salaam Stock Exchange, it will be known as Nyumbani Bond,” NHC Director General Hamad Abdallah revealed on Thursday in Dar es Salaam at a meeting with editors from different media houses.

The meeting was a continuation of meetings between public organisations and the editors organised by the Office of the Treasury Registrar with the aim of highlighting their activities and achievements.

Mr Abdallah stated that the NHC housing bond is now in the preparatory stages within the institution, whereby the first proposal was already presented to the NHC Board of Directors.

Elaborating on the factors for the rising revenue and profit, he said, the company managed to collect more revenue from its rented houses and through the sale of houses and commercial buildings.

Through the sales of residential and commercial buildings the company garnered a total of 121.95bn/- in the year 2021/22 up from only 29.3bn/- in 2020/21 which is a quadruple.

Again, the income from the rented buildings went up from 89.9bn/- in 2020/21 to 90.76bn/- in 2021/22.

In the meantime, the company collected 45.98bn/- in 2021/22 from engineering consultancy services, an amount which is above 25.6bn/- in the previous year.

“In three years consecutively, the corporation has been growing at a rate of 12 per cent.

Speaking over the ongoing projects, he explained that they are implementing an ambitious 466bn/- project dubbed ‘Samia Housing Scheme’ through which 5000 units will be erected in Dar es Salaam, Dodoma and other regions.

50 per cent of the houses will be built in Dar es Salaam, 20 per cent in Dodoma and the remaining 30 per cent in other regions.

In Dar es Salaam the scheme started in September 2022 at Kawe area, where 560 units are under construction.

“About 85 per cent of these houses have already been sold while the construction is currently ongoing,” NHC boss stated.

“We have named this scheme after Samia because these projects were stalled for some years and it is President Samia Suluhu Hassan who revived them.”

He pointed out that in Dodoma, the Samia Housing Scheme will kick off from next month where in the first phase 100 units will be constructed.

Mr Abdallah mentioned other grand projects which had stalled but have now resumed, including the Morocco Square project worth 137bn/-, which has been completed by 97 per cent.

“We have started getting tenants and buyers for houses at the Morocco Square grand project,” he stated, mentioning another grand project  called Kawe 711 and the Golden Premium Residence.

The Morocco Square, which consists of residential, shopping malls, office spaces and hotel, once it becomes operational, the company aims to collect 850m/- monthly, which roughly it will be collecting 9bn/- a year.

“We look forward to starting to get a return on investment after 12 years.”

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