Developer targets rich clients with Sh2bn Runda houses

Money Markets

Houses in Runda. Kings Pride is building homes that will cost between Sh5.9m and Sh12.5m in the estate. PHOTO | FILE 

By SIMON CIURI

In Summary

• The firm is carrying out three projects dubbed Runda Royales, Windsor Gardens and Runda Park financed through a mix of debt and equity.
• The price of a house will range from Sh5.9 million to Sh12.5 million.
• Kings Pride said the zero deposit concept, where a potential home owner occupies the house and pays an agreed amount later, has been a key boost to its investment.

Real estate developer Kings Pride has started building 373 two-and three-bedroom houses in Runda, Nairobi, targeting the upper middle class including expatriates.

The firm is carrying out three projects dubbed Runda Royales, Windsor Gardens and Runda Park financed through a mix of debt and equity.

“The investment is backed by National Bank, Equatorial Bank and a Pan-African mortgager at a cost of over Sh2 billion,” Kings Pride chairman David Karau told the Business Daily Monday.

The developer has previously financed projects using funds from Co-operative Bank.

“Runda Royale will consist of 85 housing units while Windsor Gardens will have 88 units and Runda Park 200 units consisting of two- and three-bedroom houses,” said Mr Karau.

The price of a house will range from Sh5.9 million to Sh12.5 million. The price is based on the size of the houses, Mr Karau said. They are set to be completed by mid-next year.

“There has been huge demand for decent and luxury houses in the area and we saw an opportunity to invest in and deepen our investments in the area. These are high-return investments with a ready market.”

He noted that Kiambu Road, particularly Thindigua area, has become a major attraction for potential homeowners due to its proximity to the central business district. Employees of the United Nations and foreign embassies prefer the area.

Thindigua Heights is another developer putting up apartments in the area.

READ: Kiambu Road developer puts up Sh4.2m houses

Investors take advantage of the good road network and availability of social amenities to increase the price houses in the area.

Kings Pride said the zero deposit concept, where a potential home owner occupies the house and pays an agreed amount later, has been a key boost to its investment.