Work on Tatu City set to begin after eight-year delay

Tatu City sponsor Stephen Jennings (left) with Dorman’s Chairman Jeremy Block. Dorman’s has acquired 10 acres in the park on which it will build its regional headquarters. PHOTO| FILE| NATION MEDIA GROUP 

In Summary

• The judge said the ruling was aimed at giving the warring shareholders a chance to call a truce and continue with the multi-billion shilling project.
• The management is now moving full steam ahead and is planning to sign contracts for the development of high-density residential housing units.
• “We are talking to a number of developers to try and get moving with the development of the high-density residential,” Mr Barron said.

By NATION CORRESPONDENT
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After eight years of bickering and legal battles between the parties involved in the planned Tatu City, work on the project finally appears set to bein

The management last week said it expects the construction of residential and industrial premises to begin as soon as the  rains end.

It also expects to start laying the road infrastructure and bulk service lines next month, which will see power, water and sewer lines available next year within the 2,500-acre development in Kiambu County.

“But we do have a temporary arrangement for those who are ready to start building now. We can supply water and power on a temporary basis until the main lines come in,” said head of sales Chris Barron of Tatu City, which owns the project.

He added that they had put about 150 quarter-acre and 150 half-acre plots on the market, 90 of which have been sold.

“The quarter-acre plots are going for Sh7.5 million while the half-acre ones are going for Sh12.5 million. This is inclusive of a Sh1 million service charge for five years,” he added.

Tatu City has been a start-stop affair due to wrangles between shareholders and the board, which have stalled the  development for eight years.

Although there is an ongoing case on the constitution of the board between the foreign and local directors, last month Mr Justice Eric Ogola allowed the  the project to go one, pending an audit of the company’s accounts, which have featured in the war between the directors.

The judge said the ruling was aimed at giving the warring shareholders a chance to call a truce and continue with the multi-billion shilling project.

The management is now moving full steam ahead and is planning to sign contracts for the development of high-density residential housing units.

“We are talking to a number of developers to try and get moving with the development of the high-density residential,” Mr Barron said.

“It will most likely be a joint venture with a developer. We expect to start building next year because it’s also dependent on our ability to provide the bulk services to the area.”

He said they are finalising on the dedicated master plan for the high-density area but expect that there will be up to 10,000 of two, three- and four-bedroom units  targeting the middle class.

RISING DEMAND

Mr Barron added that prices of similar houses currently range between Sh4 million and Sh9 million, noting  that their selling prices will be based on the market.

The 100 acres allocated to the Industrial Park  has sbeen  raised to 420 acres due to growing demand.

Dormans’ Coffee Group last week announced that it has acquired 10 acres to build its global headquarters in the park.

Stephen Jennings, a Tatu City founder member and the CEO of Rendeavour, one of the major shareholders, said Dorman’s buying into Tatu was an affirmation that investors were confident that the court process was not detrimental to their investments.

“Industrial investors are astute enough to realise that the court process will not have a material effect,” he said.

Upon completion, it is expected to accommodate 70,000 residents and handle 30,000 visitors daily, according to its planners.

It remains to be seen if the Sh240 billion project will get off the ground this time.