Developers want a predictable environment

Ten questions for Ian Henderson, Managing Director, Superior Homes

By Peter Muiruri

1.    Tell us a little bit about your working background in other parts of the world and the experience you bring to the local market.

I have worked extensively in a number of African countries with the United Nations and other aid agencies. As a logistician with Save the Children, I worked in Ethiopia in 1986. I also assisted with the repatriation of Namibians from Angola so that they could vote in their home country.

I was involved in moving Eritreans from Sudan as well as handling the refugee crisis in Rwanda and Zaire. My tour of duty also took me to Uganda, Ghana and Mozambique among other African countries. Though I was mainly providing transport, I saw first-hand the magnitude of lack of proper shelter.

2.    What inspired the Green Park project in Athi River, one of the first gated communities in Kenya?

Kenya is among the most stable countries in the region. It is also an economic powerhouse more so, when the economy was growing at about five or six per cent. This has produced a very fast growing middle class that is in need of good housing. We saw that as an opportunity to fill an already existing need.

3.    How does Kenya compare with other countries in the region when it comes to the provision of affordable housing?

Having been to several other African countries, Kenya has made great strides in coming up with housing projects. We have a vibrant private sector that is not afraid to invest in real estate despite the high overheads. In fact, in the recent past, the market seemed to be flooded with housing but as we all know, there is still a need for more housing to cope with a growing population.

4.    Many developers are opting for apartments while your project is 75 per cent bungalows, does that make economic sense in terms of land use?

The price of land in this area was within our reach when the project was conceived. In contrast, land in the city is becoming limited while the prices are exorbitant for the few parcels that remain. We wanted to give people a homely lifestyle where one can have a small compound rather than squeeze them in tight knit homes.

5.    How will you prevent the urban decay prevalent in other projects from encroaching on the Green Park project?

Everyone living here knows what is expected of him or her. First, all homes are owned on a leasehold basis, meaning that one cannot do whatever he wants with his property. It is a controlled development. For example, one cannot come up with additional structures within his property.  One must read and agree to abide by such and other rules before accepting to purchase the property.

6.    How have the fluctuating interest rates affected developers?

Many, if not all huge projects are put up with borrowed money. It becomes increasingly difficult to plan properly if interest rates fluctuate, more so upwards. High cost of financing has seen few ground breaking ceremonies in recent months. In fact, much of the houses in the market can only fill the need of the next three to six months. It is not only developers that are affected. Homebuyers too, need cash to purchase the homes. Again, for many, this may mean borrowing the funds or arranging for a mortgage. Either way, interest rates are a major factor in the final pricing of the home.

7.    What kind of lifestyle do you bring for Green Park residents?

This is a high kind of lifestyle in a peri-urban setup. We wanted a place where people can relax as they take in the fresh air from the Lukenya Hills. Most of the residents work in the city and I am sure they do look forward to coming back home at the earliest opportunity. Our open plan ensures that children can play uninterrupted. Also, we have hedges and plantings rather than high walls between plots. We want neighbour to look out for neighbour rather than having the place teaming with askaris.

8.    In what ways can the government assist developers who hope to provide good housing for the expanding middle class?

Developers want a predictable environment. This can be achieved if the government sustains the infrastructure development we have seen in the past several years. Processes in crucial Government departments such as the Lands offices, power and water companies take long to complete. The longer the processes, the more money one spends and as the saying goes, time is money. Such money can be put to good use in the project itself.

9.    Are you apprehensive about investing in an electioneering period?

No, this is because I am sure that lessons have been learned from the past, and all will go smoothly. That said, the economy and decision-making does slow down towards election time and we expect the economy to really take off from the middle of next year.

10.  Where do you want to see yourself in the next few years?

After the success of Green Park, we would like to extend such a lifestyle to other areas bordering the city. Later, we intend to have some substantial projects not only in Kenya, but the regions as well. We want to create a brand that people can identify with. In the meantime, we have introduced yet another affordable home within Green Park known as the Quarter Villa that is currently under construction.