Pension fund building Sh3bn mixed-use property in Nairobi

Money Markets

CPF Financial Services chief executive officer Hosea Kili. PHOTO | ANTHONY OMUYA 

By DAVID HERBLING

In Summary

• CPF Financial Services is putting up 252 apartment units and a shopping complex expected to host more than 50 outlets on a five-acre plot.
• The pension fund is eyeing double-digit returns from the real-estate project dubbed ‘Freedom Heights’ which targets the upper middle and high-income earners.

County workers’ pension fund manager CPF Financial Services is putting up a Sh3 billion mixed-use development on Nairobi’s Langata Road featuring residential houses, a shopping mall and offices.

The devolved staff pensions firm, with Sh22 billion assets under management, is putting up 252 apartment units and a shopping complex expected to host more than 50 outlets on a five-acre plot.

CPF chief executive officer Hosea Kili said the fund is eyeing double-digit returns from the real-estate project dubbed ‘Freedom Heights’ which targets the upper middle and high-income earners.

“We’re expecting double-digit returns from this project. We bought that plot a long while back so we decided to develop it given the proximity and easy access to the city centre,” said Mr Kili in an interview with the Business Daily.

This project deepens CPF’s real-estate portfolio valued at more than Sh8 billion or a third of the fund, with key commercial buildings in Nairobi including CPF House, Pension Towers, Travel House, and Kenwood House.

The project located opposite the historic Uhuru Gardens in Langata will be complete in December this year, Mr Kili said, adding that buyers of the apartments will not be charged a service fee for a 10-year window.

“We will manage the property and owners will only begin paying maintenance fee after 10 years,” he said.

The two-bedroom apartments are going for Sh11.2 million each, three bedroom units at Sh13.6 million apiece and those eyeing four-bedroom flats will fork out Sh15.9 million.

CPF, through Laser Property Services Ltd, will be the property manager and supplier of all other utilities to the estate, including metered cooking gas, water, electricity and waste management.

Mr Kili said the CPF-owned real estate firm will procure the amenities from utility providers and re-sell to residents in the estate.

Other key features of the project include a jogging track, outdoor barbeque area, children’s play area, landscaped gardens, Internet connection, CCTV cameras and solar back up power.

CPF Financial Services was formerly known as the Local Authority Pension Trust.

It was established more than 80 years ago, acting as a contributory scheme for employees of the local governments, now county units.

The scheme has 21,050 members drawn from workers of the devolved units.