Shiv Arora, Cytonn officer. PHOTO | DIANA NGILA
By GEOFFREY IRUNGU
Cytonn Investments has launched a franchising model for its real estate business with partners in...
10 counties.
10 counties.
The company’s real estate arm — Cytonn Real Estate —
revealed it is targeting Nairobi, Mombasa, Kajiado, Kiambu, Machakos,
Nakuru, Vihiga, Kericho, Migori and Trans Nzoia.
The franchisees will have the benefit of accessing
Cytonn Real Estate’s expertise in identifying, evaluating, structuring
and financing real-estate projects.
Through the Cytonn brand, the franchisee will be
able to offer a range of services that include real-estate deal
origination and site acquisition, agency services and property
management.
“The company is also planning to expand in the
region. Kigali in Rwanda is an area we are looking at,” said Shiv Arora,
head of real estate private equity at Cytonn Investments.
The partnership model has two offers; one where the
franchisee pays a one-off fee of Sh1 million ($10,000) and then an
annual charge of six per cent of gross revenues while in the second one
Cytonn Real Estate comes into a project taking a private equity of
between 70 to 80 per cent with the possibility that it can be progressed
into the company owning a 100 per cent.
The company intends to exploit the opportunities afforded by the shortage of housing.
Demand is estimated at 200,000 houses a year,
though there is no data on the number that are ready and willing to buy
the mostly middle- to high-income homes that various organisations have
been building
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