- Phatisa that recently acquired stake in Kenya’s General Plastics will develop Sh1.8 billion studio apartments behind Galleria Shopping Mall in Karen, Nairobi.
- The project will be a joint venture between Phatisa and Africa Reit Ltd, a Nairobi-based property development company.
- The high-end bedsitters project will be funded using a mix of debt and equity from Phatisa’s Sh3.8 billion PAHF. Construction is expected to begin later in the year and the development involves six high-rise blocks.
An African private equity (PE) firm that recently acquired stake in Kenya’s General Plastics will develop Sh1.8 billion studio apartments behind Galleria Shopping Mall in Karen, Nairobi.
East African-based Phatisa plans to construct about 1,400 units targeting Nairobi’s young professionals and students living around the locality dominated by education institutions.
The executive studio flats will be built on a six-acre plot located along Magadi Road, off Lang’ata Road and will be rented out upon completion.
The project will be a joint venture between Phatisa and Africa Reit Ltd, a Nairobi-based property development company.
“The locality suffers from an acute shortage of formal, good quality rental housing options for young adults early in their careers and those continuing their studies within the neighbourhood,” said Eton Price, fund partner at Phatisa’s Pan African Housing Fund (PAHF).
“This offers a long-term housing solution to the shortage of affordable housing in the area. The immediate benefits for the residents will be the opportunity to live within close proximity to their work and educational institutions.”
The housing project will be funded using a mix of debt and equity from Phatisa’s Sh3.8 billion ($41.95m) PAHF. Construction is expected to begin later in the year and the development involves multiple blocks.
The Galleria Mall location is an education hub with several institutions in the vicinity including Africa Nazarene University, Catholic University of Eastern Africa, Multimedia University of Kenya, Tangaza College, Kenya School of Law, Brookhouse School and GEMS Cambridge International School.
Phatisa is currently crafting an exit strategy from the Magadi Road project and plans to either sell off the units or dispose of the blocks to pension funds, Saccos and investment groups seeking to earn rental income.
The Magadi Road project becomes Phatisa’s third real-estate deal in Kenya, underlining the fund’s focus to cash in on East Africa’s booming property market. It has other projects in Rwanda and Zambia.
The PE fund is constructing 289 residential units in Kigali and another 310 stand alone houses in Lusaka.
Phatisa is constructing 66 apartments in Kikuyu Township where each of the two-bedroomed units is going for Sh7.5 million. The development dubbed Westpoint Heights is located on Kikuyu Road, about a kilometre from Alliance Girls High School.
ALSO READ: PE firm to build Sh9.95m one-bedroom homes
The South African PE firm is also constructing a 14-storey residential apartment block in Westlands of 80 one-bedroom units each retailing at Sh9.95million.