Investors kick off second phase of Kilifi holiday homes scheme
Hello Developments Limited director Ashton Towler (R) with Kenya Tourism Board MD Muriithi Ndegwa (L) during the launch of Mandharini Property Development at The Sankara Hotel on April 9, 2014. Photo/Diana Ngila
The second phase of the Sh4.5 billion Mandharini holiday homes project in Kilifi has started, with the developers targeting more local buyers for the 150-house project.
Hello Properties, the developers of the project, say that the construction will take two years to complete, but could be done earlier depending on the rate of take-up of houses by buyers.
“Most of those interested in the houses are Kenyan. At least 14 houses have been reserved today (Wednesday) in the Maskani section,” said Hello properties executive director Ashton Towler (pictured right) during the launch of the second phase of construction.
The property is owned and funded by a mix of private and institutional investors, which include Safaricom Staff Pension Fund (28 per cent equity) and Kenya Tourist Development Corporation.
Work on the first phase of the project began in 2010, with 22 houses nearly complete. House prices at Mandharini range from Sh22.5 million to Sh62.5 million.
Financing facilities are provided by I&M Bank, which fully financed the first phase, with Mr Towler saying that mortgage facilities are available from a number of local banks as well.
Kenya Tourism Board managing director Mureithi Ndegwa said that the tourism sector which has been hit by insecurity worries would benefit from government support to private sector players willing to invest at the Coast.
“We are very keen on invigorating private-public partnerships with developers and investors whose investments are crucial in expanding both our tourism industry and property development sector in areas that have hitherto been underexposed,” said Mr Mureithi.
Mandharini is among a string of high-end property developments in the Watamu area of Kilifi, which also has the Vipingo Ridge development and the Sh15 billion Ocean Seven luxury apartments project at Kikambala.
An increasing number of Kenyans are investing in holiday homes which they then rent out to both local and foreign tourists.
East Africa, Commerce and Tourism secretary Phyllis Kandie said during the recent cabinet scorecard briefings the number of international visitors had dropped by seven per cent since the terror attack on the Westgate Mall in Nairobi last September.
According to Ms Kandie, the government is now looking at ways of boosting domestic tourism to cover for the shortfall in foreign visitor numbers.
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