Apartments under construction. South African private equity Phatisa will
develop Sh1.8 billion studio apartments behind Galleria Shopping Mall
in Karen, Nairobi. PHOTO | FILE
By DAVID HERBLING, hdavid@ke.nationmedia.com
In Summary
- Phatisa that recently acquired stake in Kenya’s General Plastics will develop Sh1.8 billion studio apartments behind Galleria Shopping Mall in Karen, Nairobi.
- The project will be a joint venture between Phatisa and Africa Reit Ltd, a Nairobi-based property development company.
- The high-end bedsitters project will be funded using a mix of debt and equity from Phatisa’s Sh3.8 billion PAHF. Construction is expected to begin later in the year and the development involves six high-rise blocks.
A South African private equity (PE) firm that
recently acquired stake in Kenya’s General Plastics will develop Sh1.8
billion studio apartments behind Galleria Shopping Mall in Karen,
Nairobi.
Johannesburg-based Phatisa plans to construct about 1,400
units targeting Nairobi’s young professionals and students living around
the locality dominated by education institutions.
The executive studio flats with an average price
tag of Sh2.2 million will be built on a six-acre plot located along
Magadi Road, off Lang’ata Road.
The project will be a joint venture between Phatisa and Africa Reit Ltd, a Nairobi-based property development company.
“The locality suffers from an acute shortage of
formal, good quality rental housing options for young adults early in
their careers and those continuing their studies within the
neighbourhood,” said Eton Price, fund partner at Phatisa’s Pan African
Housing Fund (PAHF).
“This offers a long-term housing solution to the
shortage of affordable housing in the area. The immediate benefits for
the residents will be the opportunity to live within close proximity to
their work and educational institutions.”
The high-end bedsitters project will be funded
using a mix of debt and equity from Phatisa’s Sh3.8 billion PAHF.
Construction is expected to begin later in the year and the development
involves six high-rise blocks.
The Galleria Mall location is an education hub with
several institutions in the vicinity including Africa Nazarene
University, Catholic University of Eastern Africa, Multimedia University
of Kenya, Tangaza College, Kenya School of Law, Brookhouse School and
GEMS Cambridge International School.
The developers are banking on the strategic
location in the Karen-Lang’ata suburb to woo first-time homeowners and
investors to buy into the deal.
Phatisa is currently crafting an exit strategy from
the Magadi Road project and plans to either sell off the units or
dispose of the blocks to pension funds, Saccos and investment groups
seeking to earn rental income.
The Magadi Road project becomes Phatisa’s third
real-estate deal in Kenya, underlining the fund’s focus to cash in on
East Africa’s booming property market. It has other projects in Rwanda
and Zambia.
The PE fund is constructing 289 residential units in Kigali and another 200 stand alone houses in Lusaka.
Phatisa has already completed building 66
apartments in Kikuyu Township where each of the two-bedroomed units is
going for Sh7.5 million. The development dubbed Westpoint Heights is
located on Kikuyu Road, about a kilometre from Alliance Girls High
School.
ALSO READ: PE firm to build Sh9.95m one-bedroom homes
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