Business / News
Tuesday, 11 Oct 2016 04:48 EAT
The real estate developer, Housing Finance Group has embarked on a Sh5 billion project to put up 1,520 apartments along Thika Road as the company ramps up its development portfolio. The apartments will be built at the former Clay Works off Thika Road in a joint venture with Clay Works Limited which owns the land.
The project will sit on 24.5 acres and will be built in three phases. Phase one will be set on 8.6 acres, Phase two on 10.5 acres and Phase three on 5.4 acres, according to James Karanja, Executive Director of HFDI, the property development and investment subsidiary of HF Group.
Mr Karanja said today in Nairobi that two bedroom units will start from Sh6.5 million while the three bedroom units will start from Sh7.5 million. “The first phase will see the construction of 560 units; the second phase will be of 480 units and the third phase will also see the development of 480 units,” he said.
Phase one is expected to be complete by the end of 2019, adding to the variety of apartments in the market around Nairobi. The houses are targeted at the middle class market and other investors who may look to let out the units. HFDI has been pursuing a joint venture model where it partners with landowners and provides the financing to develop residential and commercial units citing the rising cost of land in the city.
The Clay Works development was initially announced in February together with another project involving parceling of 183-acre serviced plots scheme in Ruiru. Other HFDI projects include Komorock 5A and Komarock 5B (maisonettes), Komarock Heights (apartments), Richland (apartments) along Kamiti Road, Precious Gardens (apartments) in Riruta and K Mall.
The real estate projects are part of HF Group’s strategy to grow and diversify its business that has previously relied on financing purchase and construction of houses and commercial buildings. The Clay Works project will have extra amenities to help it compete with other similar projects around the city.
“The project as a whole will offer a serene neighborhood with lots of park-like greenery, secure play grounds for children, ample parking and lifts that will give the residence a homely feel,” Karanja added. A shopping centre and a kindergarten will also be built during the last phase of the project.
Developers are putting up more apartments in Nairobi and its satellite towns as the cost of land makes it less viable to build stand alone units targeting the middle class.
The writer is a contributing reporter for the Kenya Free Press