Category Archives: Real estate Investment

Role of property management in real estate growth.

In the past decade the skylines of Kenya’s cities and towns have been filled with magnificent skyscrapers.

They are statements of purpose, commercial success and faith in the future. Every day we see new ones and that counts for something in the form of income generation and employment for more than 70 per cent unemployed youth. What is not so visible is the upkeep of these structures over the short and long term. Property management is meant to capture both the value of the structure in terms of longevity of its technical life, as well as a reliable regular revenue stream.

Maintenance can be done in different stages. Reginald Lee defined those stages as follows:

  • Planning and design stage – which should be based on intended use and be as maintenance free as possible. In this stage a lot of money can be saved with the proper plan and design. For this reason, the building manager and maintenance personnel should be consulted during the early stages of the building design.

Prices of posh homes drop as supply rises in Nairobi.

Luxurious homes in kenya

 

Prices of luxurious homes in Nairobi fell slightly during the first three months of the year, according to a Knight Frank report. The Knight Frank Prime Global Cities Index quarterly report released last week ranks prime residential markets in 35 cities worldwide. It states Nairobi recorded a one per cent decline in prices of posh homes between December 2014 and March 2015.

Supply of high-end homes slightly exceeded demand, mainly due to developers responding to the rising foreign investor interest in Nairobi over the past few years. This is in addition to an expanding pool of local high-net-worth individuals seeking to buy trophy homes. The moderate growth in supply created room for price negotiation between buyers and developers, Knight Frank added.

Chinese firm builds holiday homes in Mombasa.

Diamond residence sultan palace

 

Chinese firm Sultan Palace is developing 198 vacation homes at the Kenyan Coast for sale despite the ailing hospitality sector in that region.The units comprise 50 coral stone beach houses, 16 villas and 132 condos.

General manager Liu Tiancai said hotel closures in the region have created accommodation shortage which is expected to boost the demand for vacation homes.“The decline in tourism numbers is only a short term occurrence. We have invested at the Coast because we believe that the country still has the potential to return to its glorious days sooner than many think,” he said.

Valley View Business Park offers tranquil serenity in a bustling city.

Valley View Business Park

The Valley View Business Park is proof that functionality is not the only factor that property developers consider when designing a commercial space. If anything, opulence and lavish comfort can also be part and parcel of the final product. The business park, an 11-storey twin towers, took three years to construct and is now ready for occupation.

According to Villa Care Limited, the selling and letting agents managing Business Park, interested parties seeking to occupy the facilities can do so from as early as Tuesday this week to May 10, 2015.Situated near Nairobi’s City Park; it is sandwiched between the Mathare River and Muthaiga estate, as well as the proposed M15A highway and City Park Nature Reserve.

TWO RIVERS DEVELOPMENT ATTRACTS USD 155 MILLION (OVER KES 14 BILLION) IN INVESTMENT

Two rivers development, which is a project of the Centum Company, has attracted USD 155 Million funding or over Kes.14 billion in debt and equity from The Co-operative Bank of Kenya Limited and AVIC International, Industrial & Commercial Development Corporation (“ICDC”).

A sum of USD 70 Million (over Kes. 6.3 Billion) in equity has been invested in the project by the AVIC international  Company. This is in addition to the USD 5 Million (over Kes. 450 Million) in equity invested by the Industrial and Commercial Development Corporation of Kenya. Also, the Co-operative Bank of Kenya has secured a local debt funding of USD 80 Million (over Kes. 7.2 Billion).

Naivasha’s Buffalo Mall Now Reports 95% Occupancy

Buffalo Mall, Naivasha’s biggest shopping mall has now leased 95% of the mall. Kenya’s  top brands have already taken their place in the Mall. The developers are already set on a strategy to target Kenya’s Secondary Cities. The phase one of the mall was already complete on November last year only eleven months after construction started.

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The developers have expressed satisfaction with the ongoing construction progress and quality of delivery on site and so far phase one has attracted different leading brands in Kenya.  Phase two has already attracted  an array of Kenya’s leading brands with more than 20% leased with a considerable expression of interest having been received for the balance of areas. This level of interest on provision of truly standard modern retail facilities in Kenya’s secondary cities is long overdue and hence the need for this level of interest.

Reits best real estate bet for low income earners

Real estate investment trusts (Reits) have featured prominently in business news since the Capital Markets (Real Estate Investment Trusts and Collective Investment Schemes) Regulations came to effect last year. Among their benefits is the entry of low-income earners into real estate investment.

For low-income earners, investment in real estate has been elusive. While the sector has high returns on investment, its capital demands are limiting. Many investors rely on loans from financial institutions while others exploit avenues such as joint venture agreements for financing. Bank loans, outweighing other sources of income, have their shortcomings. Lenders will ask for security for the loan, a requirement many low-income earners may not easily meet. The interest rates are also discouraging.

Cheap housing concept unveiled in Kenya

Three investor companies from America, Britain and India have teamed up and launched what is to be Kenya’s most affordable brick and mortar gated community houses.

The companies, Blue Haven Initiative which is a family organization from US, has partnered with Metropark Developers and Housing Infrastructure from India together with Housing Infrastructure to put up a Sh3 billion housing project in Athi River.

The project which will be Known as Karibu Homes will be made up from 1,082 houses on a 20-acre plot in Athi River which is just a kilometre off Mombasa Road.

Kenya ranked as the most improved real estate market globally

The Global Real Estate Transparency Index ranked Kenya top among 14 most improved countries in real estate transparency globally. The Index by consultancy firm Jones Lang LaSalle Index uses a combination of quantitative market data and information collected through surveys of its global business network.

Interior Decor Devolves To The Counties

The paints industry has become very competitive in the last few years especially from the price perspective. Players in the Industry are now focusing on introducing quite competitive prices in the market. Leading paints manufacturer Crown paints while continuing to introduce new and innovative products is keen on regional expansion. Crown Paints Chief Executive Officer Rakesh Rao said his company was firmly on track to entrench its presence in the region using a unique model of setting up mini-plants that feed demand for specific regions.