Market News

Sh1.4bn high-end apartments plan for Spring Valley

construction site
Workers at a construction site in Kisumu. FILE PHOTO | NMG 

A firm is putting up 40 high-end furnished and serviced apartments in Nairobi’s Spring Valley area worth Sh1.4 billion, targeting the expatriate community.

The multi-storeyed Elsie Ridge apartments on Lower Kabete Road now on sale with a leaseback agreement comprise one bedroom, two-bedroom and three-bedroom apartments as well as several three bedroomed penthouses.

The project consultant George Siangani, who is also the chief executive of Intime Group, said it solely targets the expatriates and is slated for completion in January 2019.

Investors in the project started off paying Sh16 million for one-bedroom apartments, Sh25 million for two-bedroom and Sh38 million for three-bedroom units with the penthouse going for Sh50 million.

“We are working on providing high net worth individuals with a secure home that boasts everything they would wish to have on arrival. This means expatriates arriving at JKIA airport at night will be picked up and driven to our facility.

“We shall have a 24-hour manned reception that will acquaint the incoming guests with the property’s regulation before leading them off to their ‘house’ for handover of keys,” he said.

The facility will also include a restaurant, a business centre and a lounge as well as a pub exclusively reserved for investors in the project, renting residents and their guests only.

Mr Siangani said renting out of the furnished apartments will start at Sh250,000 ($2,500) and Sh350,000 ($3,500) for the two-bedroomed apartments monthly.

“This is a market that has yearned for high-end products that fit their elite lifestyles,’’ he said.

‘‘Kenya is fast becoming a destination for high networth individuals in the corporate world as well as affluent members of the society,” he added.

Mr Siangani said returns on such investments continued to rise with research showing an annual return on investment at 14 per cent compared to six per cent on rental income.

The furnished apartments’ space has attracted Insurance Group Britam #ticker:BRIT and real estate investments firm, Cytonn, who have set aside millions of shillings for development of furnished apartments.