PERIOD: FEBRUARY 21 to 28, 2016

Britam to focus on Real estate investments for growth

25/2/2016 : The Standard, Home and Away  magazine page 2

• An asset manager, Britam holdings is focusing on Real estate business to reduce investment risk and increase investor returns.
• In addition to Britam group’s flagship commercial Langata house building in Nairobi, the group is working on a pipeline that is dollar nominated to shield investors from currency fluctuations.
• The group is restructuring leases, improving efficiency in property management and optimizing property asset management.Read more

Technology used in the West not suitable for the local climate

25/2/2016 : The Daily Nation , page 40

• Many modern buildings in the Sub- Saharan region are replicas of those designed for the west, whose climate is completely different.
• The buildings might look good, but few pay attention to the environment in which they are built and the cost of putting them up.
• In the last couple of years, the construction industry has moved from using the traditional brick and mortar method of construction and adopted more modern construction, like using glass cladding.
• Today a towering construction of glass, concrete and glass like I & M building on Kenyatta Avenue are more appealing than Teleposta Towers or Nyayo house which were built before 2000.
• However environmental experts have expressed reservations about this new building style.
• Here are some of the measures that need to be taken in order to meet environmental standards:

To prevent heat gain, the longer axis of the building should be on the east- west axis while most windows should be placed facing the north and south axis to reduce the amount of rays of the rising and setting of the sun into the house.

Use of natural ventilation. I.e. Fix windows that can be opened to allow cooling.

Use of thick walls to increase thermal mass which can store energy absorbed from the sun and release it over time. Conversely, it can resist heating up too fast from solar radiation.Read more

Shelter Afrique receives loans to boost project financing

25/2/2016 : The Daily Nation , page 42

• Pan Afrian Housing lender Shelter Afrique has received  a Ksh 2.5 billion ($25 million) loan from the Islamic Corporation for the development of the private sector (ICD) and another Ksh 836 million from the African Development bank for onward lending.
• The two loans are meant to help the Nairobi –based housing company improve its project financing.
• The lender and real estate Kings Pride recently broke down ground for a 240 apartment residential development in Kiambu town and a 200 apartment development in Athi River town.Read more

CMA puts propertyzote’s crowd – funding plans on hold

25/2/2016 : The Daily Nation , page 42

• Plans to raise capital for real estate projects through crowd funding have been put on hold by a month after the capital Markets authority (CMA) demanded that its promoters file regulatory requirements
• Property zone Crowdfund ltd has planned to begin raising funds next month but was forced to postpone the plans to April after CMA demanded they file a prospectus with it.
• Crowd funding is the process of raising money from many donors using an online platform such as the internet or social media to finance a project or business venture.Read more

Bank acquires sh 836m more stake in Shelter Afrique

22/2/2016 : The Daily Nation , page 34

• The African Development Bank (AFDB) board last week approved a Ksh 836.4 Million equity investment in Shelter Afrique, raising its shareholding.
• The funds will help the housing company strengthen its balance sheet and boost its project financing
• Shelter Afrique’s current shareholding comprises 44 African countries, AFDB and Africa Re. The continental lender is part of institutions that established Shelter Afrique. According to AFDB, the construction sector is growing at 20% per year, which is below what is needed to sustain the annual demand for housing.
• The slow pace in growth of the construction sector has been attributed to the lack of accessible and well-priced housing finance, complex land tenure systems, high cost of registration and tilting, cumbersome listing process and unavailability of reputable developers with sufficient capacity.
• Thus through this contribution, AFDB will leverage Shelter Afrique’s technical capabilities, field presence and local knowledge of the regional housing market and help alleviate some of the structural financing inefficiencies encumbering Africa’s real estate growth.

Multibillion shilling projects help Kiambu shed ‘Nairobi Bedrooom’ tag

22/2/2016 : The Daily Nation , page 34

• Ongoing commercial and residential investments worth billions of shillings have made Kiambu County cast the Nairobi shadow, given its proximity to the capital city.
• Tatu city real estate project had managed to lure industrial investments from various companies worth billions of shillings, While the 775 acre Migaa Golf Resort and gated community had also attracted more companies, helping the region shed its tradition tag as Nairobi’s bedroom.
• Kiambu County is no longer Nairobi’s bedroom, but a vibrant county attracting world class investing in industries educational development, health, business and residential to its doors.Read more