Markets & Finance

Shelter Afrique starts building 200 Everest Park phase II houses

CEO

Shelter Afrique headquarters in Upper Hill, Nairobi. PHOTO | FILE

Pan African housing lender Shelter Afrique has begun the second phase of its Athi River-based mixed development featuring one to three-bedroom units.

Shelter Afrique and developer Everest Park are building phase II of the Everest Park that will see an additional 200 housing units and a commercial centre put up by the end of the year.

The development will have 40 three-bedroom, 60-one bedroom and 100 two-bedroom units priced at between Sh2.5 million and Sh6.5 million. The first phase of consisted of 240 housing units and cost Sh730 million.

The partners are investing Sh755 million in the joint venture. The lender added that it will use joint ventures and partnerships to roll out more major projects this year.

“The market is changing and to make impact, we have to change too, we are actively pursuing and developing large-scale projects this year through joint ventures and public private partnerships. Already we have Rugarama in Rwanda and Bukarere in Uganda, which are huge joint venture projects with an average of 1,000 units,” said Shelter Afrique chief executive James Mugerwa.

Mr Mugerwa added that the lender is looking at financing a project similar to Karibu Homes, a mixed development coming up in Athi River town with 1,000 units.

“We have more of the same in mind for all our member countries, and we will be revealing them during the course of the year, but large-scale and impact will be our watchword for the year.”

Joint ventures are becoming a popular way to finance large-scale real-estate projects and investment firms are actively partnering with landowners in prime areas to put up mass housing.

Cytonn Investments announced last month that it had entered into three separate joint ventures to develop properties in Rongai, Athi River and Ruaka.
Housing Finance entered into a joint venture with the Kakamega County to develop 1,000 units in October 2015.