Money Markets
Nakuru’s growing population has created a housing shortage in the town. PHOTO | FILE
By CHARLES MWANIKI
Pan African private equity firm Phatisa has entered
into a deal with real estate developer Tamarind Properties to fund the
construction of 140 residential houses in Nakuru town.
Phatisa is funding the project, known as Nakuru Meadows,
through its Pan African Housing Fund (PAHF). The development will sit
on 10 acres along the Nairobi-Nakuru Highway in Lanet area.
Tamarind has initially priced the houses at between
Sh10.8 million and Sh13.5 million, meaning the project’s value could be
worth between Sh1.5 and Sh1.8 billion on completion. The project has
been named PAHF’s largest investment in Kenya.
“Construction of the units will be done in two
phases. Phase one will comprise 104 units, and phase two 36 units, with
an estimated completion time of 24 months,” said Tamarind Properties’
managing director Joe Mungai.
Phatisa does not usually disclose the financial
size of its investments, but its criteria is to make investments of
between $5 million (Sh525 million) and $24 million (Sh2.52 billion) in
exchange for a majority or a significant minority equity stake and board
representation.
Nakuru’s growing population has created a housing
shortage in the town, pushing up land, rent and buying prices for houses
and, in turn, attracting real estate developers eyeing the demand.
The fund in March announced a joint venture with
Africa Reit Ltd, a Nairobi-based property development company, to build
1,400 studio apartments valued at Sh1.8 billion on six acres behind
Galleria Shopping Mall in Karen, Nairobi.
Last November, Phatisa said it was partnering with
In-Time Capital, a developer, to construct 80 one-bedroom apartments in
Westlands, Nairobi, that will each cost Sh9.95 million.
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