19 December 2012

Kenya: Firm to Spend Sh500 Million to Service Land

A bottom-of-pyramid focused real estate firm will invest Sh500 million to service 115 acres in Kisaju, Kajiado county, for sale to home builders. Urbanis Africa announced the joint venture with the owner of the Kisaju land on Thursday, in which it will oversee controlled development of the planned gated community.

This will be its second major real estate project in the area, adjacent to its flagship development christened Kisaju View Park estate. It will sell serviced eighth-acre plots to home builders at Sh420,000 per piece.

Developers will be restricted to four pre-approved house plans. The firm said the build-time for the project will be 18 months. The whole development is estimated to be valued at about Sh5.6 billion in capital investments by home builders and the joint venture partners by time of completion.

"... this new approach offers the benefit of a low-entry price and ample time to build the dream house," said chief executive Wagane Diouf in a statement.

Buying serviced land in planned gated communities has become a popular route for aspiring home owners who first acquire land and arrange for construction finance.

Real estate analysts say land is the single most costly item in home building, accounting for more than 30 per cent of a finished house's asking price. Urbanis has a number of planned housing developments in its project management portfolio. Its Kisaju View Park will be mixed-use, housing about 2,000 households on completion in addition to retail commercial space.

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