Real estate equity investor Actis and Indian developer Shapoorji Pallonji will put up 600 apartments targeting middle-income earners at Nairobi’s Garden City Mall Complex.
The joint venture project will see Sh12 billion injected into the development. The price of each of the units is to be determined later.
Actis global head of real estate David Morley said the two parties have implemented similar projects in Indian cities.
“Actis and Shapoorji Pallonji in India have delivered thousands of high quality, aspirational homes at affordable prices. We are confident that Actis investment experience in Africa coupled with Shapoorji Pallonji’s experience in construction and real estate development will unlock the significant opportunity,” he said.
Saying it was an entry point into the Kenyan real estate space, Shapoorji Pallonji Real Estate chief executive Venkatesh Gopalkrishnan said the company, which as 153-year-old history, was eyeing more opportunities in the market.
“There is a huge demand for affordable and middle-income homes and the goal of the joint-venture platform will be to bridge the gap in this market,” said Mr Gopalkrishnan.
Actis director Koome Gikunda said their association with Sharpooji was aimed at fast-tracking delivery of homes at scale that reflects the needs of buyers.
“There is a notable lack of institutional quality home builders with the expertise, capital and consumer trust to truly address the opportunity at scale in Kenya,” he said.
The entry of Shapoorji Pallonji, a mass housing developer, onto the local scene will excite the market currently witnessing emergence of cheaper building technologies including new precast concrete and expanded polystyrene (EPS) panels used in walling and slabs especially in new projects.
Among the notable projects executed by Shapoorji Pallonji in Africa include the Seat of Governance and Presidential Palace at Accra, Ghana, New National Assembly Building of The Republic of Gambia and several mass housing projects in Algeria.
The firm has business development offices in Kenya, Ghana, Zambia, Gambia, Liberia, Algeria and Mauritius.