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The Capital Markets Authority (CMA) has given Buildnet the go-ahead to proceed with its media advertising content, which the Regulator had earlier disputed.
This follows some amendments by Buildnet in the wording of its advertising content that had earlier been published on various platforms.
“We have noted that the proposed project taglines no longer include the wording previously identified to be in breach of the Capital Markets Authority Act Cap 64,” CMA’s CEO, Josephine Okui Ossiya, wrote in a letter to Buildnet.
In an interview with CEO East Africa Magazine on Monday, Buildnet’s Managing Director, Dr. Ibrahim Semaganda, clarified that Buildnet was not inviting the public to “become shareholders” in its literal sense, which would otherwise require CMA’s approval. He further explained that Buildnet was instead calling potential buyers to own fully Furnished, fully Serviced, and fully Managed Hotel Apartments in its Waterfront Hotel Apartments Munyonyo project, which are available for sale.
“This first-of-its-kind investment opportunity comes with a guaranteed monthly rental income of up to USD 1,900 for the first 3 years. This means that the client will be getting such a fixed amount every month, regardless of the occupancy rate of their apartment. This essentially translates to 8.5% of the client’s investment per year for the first 3 years,” Dr Semaganda explains.
“The property also appreciates at an estimated rate of 6% per year. Therefore, in 10 years, the property’s value will have almost doubled, i.e. it will be 200% of its original value. Considering the cash that the client will have recouped, almost 100% of their initial investment within this same period, the result is that one will have realized almost 300% value in the 10 years,” he adds.
He further said that unlike the traditional model, which frustrates clients with long payback periods of over 20 years, the hassle of acquiring and managing tenants, and the maintenance of their apartments, this new investment model enables clients to recoup their investment in only about 11.5 years.
“This turnkey investment opportunity is designed to give the buyer the highest value possible, moreover hassle-free,” he added.
In a letter dated 29th November 2024, CMA said it did not have any objections to the usage by the Waterfront Hotel Apartments Munyonyo project of the following taglines, among others:
- “Guaranteed Rental Income of up to 8.5% per year of your total investment.”
- “Guaranteed Monthly Rental Income of up to USD……”
- “Own a fully Furnished, fully Serviced and fully Managed Hotel Apartment.”
- “Zero Hassle for your Rental Income.”
Over the last 15 years, Buildnet has emerged as one of Uganda’s leading real estate development companies. Among its accomplishments, it has developed over 500 condominium apartment units in prime locations of Naalya, Najjera, Kira and others.
Some of the projects developed and sold off by Buildnet include Najjera Heights, Olive Homes, Florida Apartments, Creekside Apartments, Raven Apartments, Dove Apartments and Pelican Villas.