Developer eyes NSE listing by 2027, expansion into counties

Real estate developer Superior Homes has revealed plans to list on the Nairobi Securities Exchange (NSE) as it puts the final touches on its Athi River GreenPark Estate.

The firm, which specialises in master planned developments, is adding an office block at the GreenPark Estate that will also house the company's offices.

The development will also include a fitness club to complement a hotel situated on the property.

The office block, the firm says, is the final piece of the puzzle to GreenPark Estate's selling point of live, work, play and rest.

The idea, explained Chief Executive Shiv Arora, is to allow residents in the estate to have co-working spaces for a holistic life.

GreenPark is a 163-acre development, comprising 750 units and a shopping centre. Arcadia Mall serves both the residents and motorists plying the busy Mombasa Road.

Mr Arora noted that the estate will now proceed with the setting up of a filling station, an idea that had earlier been opposed by residents.

"Initially, it was a very hot issue, but we managed to get authorisation from the National Environmental Management Authority (Nema) and the Energy and Petroleum Regulatory Authority (Epra)," he said.

Away from the estate, Mr Arora revealed that there are several projects ahead of the planned listing by 2027.

They include the Sultan Hamud stopover for truckers, which he noted is a pilot for a dozen more locations along the Northern Corridor.

It will have prayer rooms, washrooms, and breakdown services, among others.

"When you look at various opportunities in the market, you realise there isn't one place where truck drivers can fuel and get clean accommodation, showers, VCT testing and breakdown services within one development. That in itself is a master plan," he said in an interview with Real Estate.

"We are going to pick some lessons from it and see how to replicate it because we feel like the entire Northern Corridor between Mombasa and Malaba could do with another 10 to 12 of these," he added.

Mr Arora said listing on the Nairobi bourse has been one of the firm's long-term goals.

"It has always been our dream, and we believe we can offer a really good suitable attractive development for people to invest in us at the NSE and change the narrative around listed real estate firms. We are pushing for that," he said.

Superior Homes is also behind Lukenya Wildlife Estate, Pazuri at Vipingo, and Lake Elementaita Lodge.

GreenPark Estate, which is made of six clusters is already sold out. Superior Homes' market niche is the middle class, with units averaging Sh15 million.

From the assessment of buyers, Mr Arora said they fall under two categories - those with mortgages and the other half who pay in installments.

"This is good as it encourages a vibrant mortgage market for our buyers. If banks are supporting you, then it shows they have faith in the product," he said.

The firm is also considering venturing into the government's affordable housing plan depending on incentives, such as necessary infrastructure.

The challenge is that such projects would be situated far from the city due to shrinking land and rising prices in the Nairobi Metropolitan area, which eventually impact house prices.

The confidence in getting approval for listing, he said, is pegged on the firm's track record in terms of the developments it has put up and its balance sheet.

"We have a track record of profitability. We don't revalue our assets. We are just a profitable real estate developer," he said.

The real estate firm has set its eyes on the Eastern Bypass areas of Ruiru, Thika and Juja for more developments in the near future as it prepares for listing.

"These are areas that are opening up with new infrastructure developments. They are attractive," said Mr Arora.

There are also plans to replicate the successes of GreenPark Estate in the counties.

"Counties continue to be attractive for us. We may not do 160 acres but smaller developments, which are well governed and designed," he said.

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