Private Equity (PE) firm Fusion Capital has acquired 75 per cent stake in Thika Royal Palms, a subsidiary of Hand in Hand Development Group that specialises in construction and farming.
The investment—of an undisclosed amount— marks the second time the PE fund has backed Hand in Hand Group.
The two had previously invested jointly in the Graceland housing project in Athi River—comprising 82-units of middle-income houses at a cost of Sh600 million— which were sold off by March last year.
“Thika Royal Palms is a special purpose vehicle (SPV) whose intention is to acquire, masterplan, put in infrastructure and sell land to individuals seeking to buy and build….this was a share subscription to enable the firm complete the acquisition of land,” said Fusion Capital executive director Daniel Kamau in a statement.
“Thika Royal Palms is currently subdividing and selling it, which is master planned for 70 stand-alone medium class homes.”
The partners will start selling plots on the development in April, Mr Kamau said, with non-cash buyers being given nine months to complete the acquisition of their plots.
Fusion Capital last year failed in its bid to raise Sh2.3 billion through development Reit (D-Reit) that was to go towards putting up a mixed use development in Meru.