The Construction Industry and Pension Fund (CIPF) has put on hold the construction of its US$14m Norton Mall project as it seeks to spread its risk to other sectors of the economy, Business Times can report.
CIPF, which planned to undertake the project in two phases, completed the phase 1 in 2017, with the contractor, Masimba Construction handing over the project to the pension fund in 2018.
CIPF said this week that the second phase has been put on hold, a move which will allow the pension fund to direct investments to other sectors of the economy.
“We suspended the construction. We have since spread our risk as well as balancing our portfolio. We have since managed to spread our risk from being property centred but to other sectors. Remember there are regulatory guidelines that must be followed from time to time,” CIPF chief executive officer Elisha Ngunga told Business Times.
CIPF’s asset base stood at US$50m in 2019.
To date, CIPF has a membership of 41 855 from the initial of about 4 219.
CIPF has to date acquired and built Msasa and Windsor Houses in Mutare, Mership and Mimosa Houses in Bulawayo, 697 Craig Allen, New Ardbennie in Harare and Thorngrove industrial shells in Bulawayo.
The Fund also undertook development of the Stoneridge Housing Scheme to afford its membership access to decent housing.
CIPF is a successor to the Building Industry Pension Fund which was established in July 1969.