A construction site. Administrator says project will help grow fund to Sh10bn in five years. FILE PHOTO | NMG
Kenya Pipeline Company Pension Scheme is set to make its first
real estate investment of Sh900 million in a 101-maisonette gated
community in Kitengela.
Scheme administrator Sammy
Njeru said a 10-acre plot has been set aside for the stand-alone units
that will retail at Sh10 million for each of the 47 three-bedroomed
one-storeyed units. The 54 four-bedroom units will go for Sh11 million.
Mr
Njeru said the scheme’s rising asset base, now standing at Sh5 billion,
presented a valuable opportunity to invest in the sector. The
Retirement Benefit Authority’s ceiling on investment in real estate
stands at 30 per cent.
“The idea is to have an asset
mix that will see our fund’s value grow to Sh10 billion in the next five
years and our diversification into the property market offers the
foundation for the planned growth,” he said.
The scheme
has purchased a 40-acre plot in Kitengela and a four-acre plot at Riat
Hills in Kisumu County. Mr Njeru said the scheme is in discussions with
the 1,542 members and their sponsor, Kenya Pipeline Company, to raise
contributions.
Chairman
George Simiyu said investment in Kenpipe Gardens, which represents 13
per cent of the investment portfolio, was informed by the need to
cushion the members against volatility in the paper wealth
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