Period: February 29 to March 6, 2016

Finnish firm gives Cytonn Sh400m real estate funding

23/2/2016: The Business daily, page 19

• Private equity firm Cytonn has received Shs 400 million in additional funding for its real estate projects from its Finnish Partner Taaleri.
• Cytonn has now raised kshs 2.5 billion up from Kshs 2.1 billion from Finnish PE firm, the main patner for its real estate projects.
• The funds came from Taaleri’s first fund and Cytonn expects additional funding from the firm which is raising cash for its second fund.
• In its strategy, Cytonn has identified Ksh 56 billion development projects, majority of which target the mid and low income segments of the housing market.Read more

Cytonn’s Twin Developments

23/2/2016: The Business daily, page 19

• This year Cytonn is planning to develop two residential projects in Ruaka and the Karen suburb of Nairobi worth Shs 4 billion and 2.5 billion respectively.
• Its maiden real estate project was a high end residential development in Karen that broke ground in 2015.
• Real estate developers, financiers, private equity firms and state agencies are warming up to massive housing, targeting the mid and low income segments. This is due to saturation in the high end market, which traditionally was the most preferred.Read more

Home Afrika contracts Egyptian firm to build Shs 3bn Sports complex at Migaa

3/3/2016: The Business daily, page 7

• Property manager Home Afrika has picked Egyptian company Wadi Delga, to build and manage a shs 3 billion sports complex at its 775 acre Migaa gated golf community in Kiambu. This is due to their expertise in building similar facilities
• The club facilities, stadium and sports academies will be completed in the next eight months while remaining front, nine holes golf course will be completed in a year.
• Home Afrika launched Mitini Scapes last month, the first housing development within Migaa consisting of 82 units of cottages and apartments.
• Mitini scapes has been constructed over the past four years at a cost of 700 million. Home Afrika has announced plans to raise up to Ksh 15 Billion over the next 18 months to finance its outgoing and new projects.Read more

Fusion Capital gets regulator green light to raise Shs 7.4bn

3/3/2016: The Business daily, page 19, Cytonn Monthly – February 2016

• The Capital Markets Authority (CMA) has given Fusion Capital the green light to issue two development Real estate investment Trust (D-Reit) to complete its existing projects.
• The private equity firm plans to raise a maximum of Ksh 7.4 billion to be split between commercial and residential developments.
• The approval of the first Developer REIT schemes is in line with CMA’s mandate to facilitate uptake of the innovative product to support the growth ambitions of the vibrant real estate sector.
• The commercial D- REIT will retail a Ksh 17 a unit with a target of raising a minimum of Ksh 1.15 billion and a maximum of 2.3 billion.
• The residential D-Reit has separately been approved to issue and list new units of a minimum of Ksh 5.16 billion. A unit of residential D-Reit has a nominal value of Ksh 23.
• Fusion Capital investments in real estate have been funded by its Ksh 10 billion ($ 100 million) African real estate fund earmarked for Tanzania, Rwanda, Uganda and Kenya.
• The offer is restricted to professional investors who are able to evaluate the level of risk they are taking when they buy into the project. The investors will put in a minimum of Shs 5 million.Read more

100 Sultan palace development luxury beach homes already sold

3/3/2016: Daily Nation, page 42

• Chinese real estate firm Sultan Place Development has sold 100 of the 210 high end luxury holiday beach homes it put up in Kilifi County.
• The houses which are being sold of plan (before completion) are going for as much as Ksh 80 million.
• The sold out units include 11 four bedroom all en suite resident villas going for Ksh 80 million each, 20 three bedroom townhouses going for Ksh 36 million each an 25 three bedroom apartments, each with a Ksh 24 million price tag.
• Others include 44 two and one bedroom apartments for Ksh 19 million and Ksh 12 million respectively.
• It is expected that by December, all the units in the Ksh 5 Billion project will have been completed.

Housing Finance to launch two major housing Projects along Thika Road

3/3/2016: Daily Nation, page 42

• Listed mortgage financier housing Finance is set to launch two major housing projects along Thika Road this year.
• It also plans to build the second phase of its precious heights apartments in Riruta. The three projects will see HF build an additional 1500 units.
• The projects will be joint ventures, where land owners provide the space while housing Finance finances the developments.
• The mortgage firm says the groundbreaking for phase two of Precious Heights Apartments will take place next month, while parceling work on an 183 acre serviced plots scheme in Ruiru (Theta Grove) will begin in July.
• HF will also start putting up two and three bedroom apartments at clay works on Thika Road in September.
• The company recorded a 22.7% growth in net profit to Ksh 1.1 billion last year, up from Ksh 975.3 million the year before in the 12 months to December on the back of increased lending.

Production of Cement crossed the six million tonne mark last year

3/3/2016: Daily Nation, page 42

• Cement production last year crossed the six million tonne mark for the first time as manufacturers upped capacity to satisfy the demand from a construction boom driven by infrastructural and real estate projects.
• Data from the Kenya National Bureau of statistics shows that cement manufacturers produced 6.3 million tonnes, up from the 5.8 million tonnes produced in 2014.
• Real estate has continued growing, with the Nairobi county government which approves all development in the city- recording a 6% jump in the value of approvals last year.

Choosing the right location for a rental

3/3/2016: Daily Nation, page 45

• According to a Nairobi real estate valuer, Mr Paul Kiome Matumbi, many people are making the mistake of putting up investments that exceed the values of other property in the area
• To avoid overbuilding, Mr Matumbi suggests, investors should consult real estate valuers at the designing phase of the construction.Read more

Stanlib plans to build Ksh 1.2 B mall in Athi River

1/3/2016: The Standard, page 31

• Slanlib is planning to set up a Ksh 1.2 billion shopping mall in Athi River. This comes after the company’s Kenyan subsidiary acquired the Greenspan retail space that is listed on the Nairobi Securities Exchange.
• The asset management firm, owned by South Africa’s Liberty holdings, will develop the mall off Mombasa road and next to East Africa Portland cement.
• The proposed mixed use development of Athi River mall will comprise retail and commercial buildings consisting of anchor, fashion, financial, restaurants…modern offices and other services as written an application for approval sent to the National Environment Management Authority (NEMA)Read more