KenGen pension fund builds Sh1.3 billion Rosslyn homes

KenGen pension fund’s Rosslyn Springs in Nairobi. PHOTO | DIANA NGILA 

By JOHN GACHIRI

In Summary

• Homes Universal, the project managers, said Rosslyn is strategic as it is close to the diplomatic blue zone of Gigiri and is served by a number of large retail malls.
• KenGen staff real-estate development is the latest in a series of high-end gated communities funded by pension funds, especially from the utility sector.

KenGen Staff Retirement Benefits Scheme has put up a Sh1.3 billion high-end housing estate in the Rosslyn suburb of Nairobi County as pension funds increasingly diversify into real estate.

The State-owned power producer worker’s Rosslyn Springs, a gated community of four-bedroom houses, is targeting homebuyers looking to live in areas not far from the city but sparsely populated.

Homes Universal, the project managers, said Rosslyn is strategic as it is close to the diplomatic blue zone of Gigiri and is served by a number of large retail malls.

“Rosslyn is one of the fastest growing upmarket suburbs in Nairobi…the area is not highly populated so one is buying into an urban setting home located on the outskirts of the city large tracts of land that allow expansion,” said Homes Universal chief executive Daniel Ojijo.

The gated community has a mix of 17 units priced at Sh79.7 million, Sh79.9 million and Sh83.5 million.

KenGen staff real-estate development is the latest in a series of high-end gated communities funded by pension funds, especially from the utility sector.

Kenya Power Pension Fund is developing high-end properties through its real estate company Sakile Properties.

Sakile has developed Loresho Ridge, Runda Park and Bogani Park in Karen suburb of Nairobi County.

Pension funds are investing in a property market which in the last seven years has posted the strongest returns amongst the various asset classes.

The land index by Hass Consult and Stanlib Investments shows that prices in Nairobi suburbs increased 5.59 times between 2014 and 2007, meaning property outshone the stock and bond market.

Rents for houses in the high-end market have, however, begun to slow after years of being on the rise as prime tenants who mostly work for diplomatic missions, multinational corporations and non-governmental organisations face tighter budgets.

The Knight Frank Prime Global Rental Index found that rents in Nairobi’s prime areas remained stable for the first three months of the year while the Hass Composite Letting Index showed that rents in Kenyan suburbs marginally increased by 1.4 per cent over the first three months of the year.

READ: Rents flat as Nairobi luxury property fails to excite market