Hemingways to lease back Sh150m villas

Wealthy investors can now buy Hemingways Watamu Resort beach villas for Sh150 million and lease them back to the hotel at a five-year annual 8.5 percent rental yield.

Hemingways Collection that runs the three five-star rated properties — Hemingway’s Watamu, Nairobi and Ol Seki Mara — said it had sold five units out of 21 exclusive villas facing the Indian Ocean with prices ranging between Sh52.5 million to Sh150 million each.

Operations director Ross Evans during the launch of the offer said buyers signing a five-year leaseback agreement would annually be granted a 15-day complimentary stay at the apartments between mid-April to mid-December.

“Owners wishing to take advantage of this exclusive investment opportunity will essentially lease the apartment back to Hemingway’s Watamu Ltd for the five-year term,” said Mr Evans.

The guaranteed fixed-return offer means the standalone cottages will be included in the Hemingway’s Watamu room inventory with owners benefiting from a seven percent annual return based on the dollar purchase price including a service charge for five years, resulting in an 8.5 percent rental yield annually.

At the same time the group’s Karen property, Hemingways Nairobi, has joined Virtuoso, global luxury and experiential travel network exposing it to 20,000 travel advisers from 350 agencies and 1,800 tour companies that make travel arrangements for the world’s wealthiest families.

The Hemingways Collection chief executive Alastair Addison said the development makes Nairobi an elite and affluent people’s resort.

“Virtuoso’s recognition of the Hemingway’s brand is an honour and we do look forward to hosting clients within Virtuoso’s network,” he said.

Mr Evans said construction of the 21 units of one, two and four bedroom villas within the refurbished 39 room facility located on Turtle Bay in Watamu was complete, giving guests exclusive family spaces available on sale between Sh52.5 million to Sh150 million.

The new prices are higher by 16.7 per cent for the small villas, which sold off-plan at Sh45 million with the four-bedroom apartment selling at Sh145 million, a 3.4 percent rise.