Firm unveils Sh50 billion real estate project
Business
By
Dominic Omondi
| May 30, 2015
Cytonn Investment has unveiled a Sh50 billion real estate deal that will see it develop a five-acre aspirational gated community in Karen.
Speaking on Thursday in a press briefing, a day that also saw the company launch its property development affiliate- Cytonn Real Estate, firm’s Chief Executive Officer Edwin Dande, noted that 85 percent of the project would be low and medium housing. The remaining 15 per cent would be prime residential housing, which will also include the five-acre Amara Ridge gated community in Karen.
Besides Karen, other developments in the deal pipeline are in Lukenya, Mavoko, Athi River, Kiambu and Ruaka. Mr Dande said it would take on average five years to complete the projects.
He said the project will be financed through a mixture of debt and equity. Of the eight projects, he said the most advanced is the prime residential part of the deal pipeline, part of the Amara Ridge. Scheduled to break-ground in August 2015, Amara Ridge is a 5-acre aspirational gated community in Karen. The development is located opposite the upcoming Bomas International Conference Center and when fully operational, the investor hopes it will complement the on-going efforts to address Kenya’s position as a conference destination.
In addition to Nairobi, the company has projects in Mombasa and Mt Kenya region. “One of our principle investors is called Talleri, which is a $4 billion (Sh388 billion) company out of Finland that has looked into this market and decided that they are going to Cytonn as their investment partner for Real Estate in this region.”
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On the Cytonn Real Estate, Mr Dande said: “As you may know the Cytonn team has been together over the last four years pushing on this real estate agenda at various platforms and finally we decided that it was time for us to create our own development affiliate in order to be focused on development.”
Cytonn’s Chairman Prof Daniel Mugendi Njiru said,“The board is fully confident that management will deliver on these ambitious real estate targets. Achieving this will deliver attractive returns to our investors, transform communities, create jobs and improve standards of living.”
The event was attended by investors, landowners, service providers and other players in the real estate sector.
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