WHI, UDSM in 8.3bn/- commercial complex deal

DAR ES SALAAM: WATUMISHI Housing Investment (WHI) has signed an agreement with the University of Dar es Salaam (UDSM) to construct and operate a modern commercial building on the university’s main campus in a move aimed at enhancing service delivery and promoting institutional collaboration.

The project, valued at 8.3bn/-, will be financed through WHI’s Real Estate Investment Trust (REIT) fund and is expected to be completed next November.

WHI Acting Director, Sephania Solomon, said the project will be developed under a build-operate-transfer model, with WHI operating the facility for 15 years before handing it over to UDSM.

“We have entered into a contract with UDSM to build a commercial building which we will operate for 15 years before handing it back to the university,” said Solomon.

The project will also serve as a practical learning platform for students, particularly those pursuing studies related to investment and real estate development. UDSM Vice-Chancellor, Prof William Anangisye, said the ‘Hill Park Business Complex’ will be constructed on a 12,498.5-square metre plot within the university campus.

“This construction will be implemented through a public-to-public partnership to promote collaboration between public institutions. It is now time for public-to-public partnerships to be able to implement major projects,” said Prof Anangisye.

He said the complex is expected to become a key economic hub, featuring retail space, offices and recreational facilities.

“Those services will include meeting halls, an executive lounge, supermarket, executive car wash, restaurants, gyms, laundry services, office rooms and children’s play areas,” he said.

WHI Director of Investment, Paskali Massawe, said the project is expected to generate annual revenues of 2.5bn/- with a gross profit of around 550m/- during the 15- year operational period.

UDSM Deputy ViceChancellor for Academic Affairs, Professor Bonaventure Rutinwa, said the university will ensure construction quality is maintained to guarantee long-term value when the facility is handed over after the concession period.

“The government encourages partnerships to reduce the burden on the government in supporting its institutions and the investment will be beneficial to the community around the university and to society at large,” said Prof Rutinwa.