Genghis Capital chief executive Geoffrey Gangla. FILE PHOTO | NMG
Investment bank Genghis Capital, in partnership with a real
estate development advisor Paradigm Projects, will help homebuyers
acquire residential houses around Nairobi without conventional bank
loan.
Through a rent-to-own home solution called Home
Ownership Made Easy (HOME), buyers will be able to obtain a long-term
purchasing facility from the developer, with monthly repayments priced
at equal or close to prevailing rental rates in the target areas.
Genghis Capital is handling the financing through clients while Paradigm Projects is handling the technical issues.
The development is expected to start in July in Dagoretti, Uthiru, Kikuyu and Ngong Road.
Genghis Capital chief executive Geoffrey Gangla on Wednesday
said property ownership requires investors and developers to be
innovative in enabling home purchases at reasonable rates.
“Majority
of people seeking home ownership do not have enough money to make an
outright purchase or the down payment required which are usually steep.
HOME is a solution that addresses the interdependency between
developers, investors and buyers allowing more people affordable home
ownership,” said Mr Gangla.
Paradigm
Projects director Austin Ogada said majority of developers are unable
to exit from projects due to unaffordability of houses since they are
usually not able to attract both equity and debt capital for funding of
the projects.
“HOME will allow long-term investors to
fully underwrite a real estate project thereby significantly de-risking
the project for the sake of the equity and debt investors as well as
providing an alternative financing platform for the eventual home buyers
to enable them purchase the properties being developed,” said Mr Ogada.
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