Market News

Cytonn rakes in Sh2.5bn from Ruaka units sale

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Cytonn Investments chief executive Edwin Dande. FILE PHOTO | NMG

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Summary

  • The mixed-use complex consists of 36 one-bedroom units, 226 two-bedroom units, 191 three-bedroom units, a lifestyle clubhouse, a commercial facility and an elevated playground for children.
  • The development has been under construction since April last year.
  • The project that sits on 4.18 acres of land in what is termed as “lifestyle community” is scheduled for completion next March.

Cytonn Investments says it has sold 55 per cent of the 453-unit gated community houses currently under construction in Ruaka on the outskirts of Nairobi for Sh2.5 billion.

The project was initially estimated to cost the same amount.

“We have sold up to 55 per cent of our residential housing unit in Ruaka. One-bedroom units has been going at Sh5.8 million, two-bedroom at Sh8.5 million, while a three-bedroom units has been selling at Sh12.4 million,” said Cytonn project manager David Mutua.

The mixed-use complex consists of 36 one-bedroom units, 226 two-bedroom units, 191 three-bedroom units, a lifestyle clubhouse, a commercial facility and an elevated playground for children.

The development has been under construction since April last year. The project that sits on 4.18 acres of land in what is termed as “lifestyle community” is scheduled for completion next March.

Mr Mutua, however, said there has been a general slowdown in the market due to the prolonged politicking that has resulted in low uptake of the houses.

“We have noticed that there has been a slight dip in the market, especially during this electioneering period. By now, we would have sold up to 80 per cent,” he said.

The project is located on the Limuru Road, 100 metres from the junction of the Northern Bypass.

READ: Cytonn to build Sh13bn luxury homes in Kiambu

It is a five-minute commute from neighbouring retail and commercial facilities such as Two Rivers Mall, the Village Market and the Rosslyn Mall.

The National Construction Authority (NCA) had earlier raised non-compliance issues over the project, which could have seen it stall, but have since been addressed.

The contractor had made changes to the super-structure contrary to the initial design documents used in applying for compliance certificate from the NCA.

Cytonn, however, provided a satisfactory explanation through a technical report addressed to the NCA showing that the design changes were advised by “in-situ geotechnical conditions” not foreseeable during preliminary design stages.

“The project as implemented is, therefore, fully compliant with the NCA quality requirements as the changes made will be incorporated in the as-built drawings of the project upon completion,” said the NCA in response to the Business Daily queries.