Aengus Investment Properties says Kenya has a shortage of 350,000 beds. FILE
A South African property firm has set its sights on Kenya’s under-supplied real estate market, targeting mainly supply of student hostels.
Aengus Investment Properties named Kenya among five African countries in which it is planning to invest ($300 million) Sh25 billion in hostels over the next five years.
The firm said Kenya joins Zambia, Lesotho, Ghana, Botswana and Uganda as markets where there is heavy demand but limited supply of suitable bed space for students.
Aengus Investment Properties said that in Kenya alone there is a shortage of 350,000 beds.
The company hinted it would take a joint venture where the institutions of higher learning free their land holdings while Aengus Investment Properties brings in their expertise.
“Universities in Africa often have the land, but they have neither the funding nor the expertise to build and manage student accommodation,” said James Huff, manager of Africa projects at Aengus Investment Properties in a statement.
Mr Huff said students are looking beyond ratings and degree courses in making a choice of where to enrol. Safe, affordable, modern student accommodation was becoming a key factor to consider.
The firm plans to use new building technologies that make it possible to churn out housing at a lower cost and faster rate. These would be operated on a 25-year lease before being handed back to the university.
“Aengus is currently bidding for 15,000 beds at two different public universities in Kenya as well as being in the feasibility stage of a 3,000 bed facility for a private institution in Zambia,” said the statement.
Real estate developers in Kenya are beginning to focus on hostels as shortage is made worse by a rising student population.
