Invest pension funds in real estate

MUTARE - Construction mogul Nancy Saungweme has challenged pension funds to invest in real estate —  considered a safe haven.

The Aloe Enterprises boss said Mutare’s central business district (CBD) — unchanged in decades with an inter-mix of dilapidated, old and re-developed buildings, was a clear testimony of lack of sufficient investments in properties.

“Mutare was supposed to be developed by money from pension funds. It’s a far less risky investment of pension than lending it out to banks where most of it was lost over the years to the disadvantage of pensioners,” Saungweme said.

She said considering the country’s risky economic environment, institutions that handle pensions should have shown a good appetite for real estate in line with global trends.

“Internationally real estate is considered a viable investment option for pension funds and here it has been very obvious that properties have been very good in hedging against loses due to currency depreciation and inflation among other things,” Saungweme said.

Mutare has been having a paradox in which the CBD and industrial areas are in decay while the residential areas are growing.

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