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Nairobi gets mega real estate plan from Russia

Discussion in 'Kenyan News and Politics' started by MkenyaMzalendo, Oct 25, 2010.

  1. M

    MkenyaMzalendo Senior Member

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    Renaissance Capital, the Moscow-based investment bank, will on Tuesday launch a Sh200 billion real estate project it says should become a visible symbol of Kenya's leadership in urban renewal and reaffirm Nairobi's position as East Africa's economic hub.

    The mega project, to be officially launched by President Kibaki, involves the use of private capital to construct a whole new city of 62,000 residents who will live in a well planned environment of manicured homes, office blocks, shopping malls and industrial parks.

    Kenya's biggest real estate project, dubbed Tatu City, will be located on 1,000 hectares piece of land in Kiambu County, behind Kenyatta University, that is currently occupied by coffee plantations.

    The project is in its conception and magnitude only comparable to South Africa's Sandton City, the leafy and exclusive high-end of market piece of real estate that was built on the outskirts of Johannesburg by the apartheid government.

    But unlike Sandton, which was mainly driven by the government, Tatu is a purely private sector driven plan that is 50 per cent owned by Renaissance Capital while the remaining shares will be held by a number of foreign investors and local partners led by former Central Bank of Kenya governor Nahashon Nyaga.

    Location of the project in Kiambu County's coffee plantations, which are close to the United Nations offices in Nairobi and the leafy suburbs of Runda and Muthaiga clearly, signals the intention of its creators to target the cream of Kenya's real estate buyers that includes international civil servants, top businessmen and civil servants whose numbers are expected to rise significantly in the next two decades.

    Tatu City is also expected to more than double the value of land in parts of Kiambu County that are close to the project site as other private developers rush in to ride on the state of the art infrastructure that is expected to come with it.

    Renaissance Capital's local contact, Patrick Mweheire, declined to comment on this story, but property investor's familiar with the project said it is expected to cost between Sh200billion and Sh240 billion over a period of 10 years.

    The Tatu City project is also significant in the fact that it stands to be the single largest private-sector driven direct foreign investment in Kenya with the potential of dramatically transforming Kenya's real estate landscape.

    The project has already been show-cased to foreign investors at the prestigious annual property conference in Cannes, France - a signal that Renaissance Capital is keen to tap investors who have identified Africa as next frontier of investment as growth stalls in the US and Europe.

    The Russian investment bank is, however, not alone in betting on Kenya's property market from outside.

    It joins a string of prominent investors including India's Mukesh Ambani, the world's fourth richest man; Dutch Hello Properties, Iran's Mahun Construction and England's Nigel Rowley who have in the past one year invested billions of shillings into Kenya's real estate market.

    Property developers attribute the growing presence of foreign money into Kenya's real estate market to the robust growth that has seen smaller investors reap outsized returns.

    "International investors have been in this market in the past five years, but they have been testing the waters with smaller projects and are now going big confident that the market is a long way from reaching its peak," Bath Ragallo, a director of Tysons Management - a leading real estate consultancy in Kenya - told the Business Daily in an interview.

    "International investors are looking for opportunities in markets that offer attractive returns given the bearish property and stock markets in the developed economies," said Friso Abbing, the managing director of Hello Properties-which has built luxurious town houses in Karen, Mombasa and Watamu.

    Hello set up shop in Kenya in 2005 to exclusively serve the high end of the market with invitations to investors to co-own its real estate assets for a minimum of 50,000 euros (Sh5.6 million) and in similar multiples thereafter with the expatriate community and European investors as its target.

    Rapid urbanisation, population growth and expansion of the middle class remain the main drivers of Kenya's property market that is riding on nearly three decades of under investment in mid tier segment of housing.

    Property market analysts say the rising rent and home prices that has gripped Nairobi and other urban centers will continue to hold further underlining real estate as an asset class of premium returns relative to equities, bonds and bank deposits.

    The rally in house prices have some Kenyans worried that a bubble may be shaping up, but most analysts say there is plenty of room for the upward momentum.

    This is what is attracting the likes of Mr Ambani to spend billions of shillings in Kenya's real estate market.

    The Indian tycoon, through Delta properties, is building two office blocks in Nairobi's Westlands and Upper hill areas, and is about to start construction of a five star hotel in the Central Business District (CBD).

    Nigel Rowley of England, another real estate developer, will set shop in Kenya in the fourth quarter of the year modelling its business around that of Hello properties.

    Iran's Mahun Construction is also scouting for joint venture real estate deals in Kenya and has already signed one with the National Housing Corporation for construction of between 2,000 and 3,000 units worth Sh6 billion for the mid and low end of the market.


    http://www.businessdailyafrica.com/Corporate%20News/Nairobi%20gets%20mega%20real%20estate%20plan%20from%20Russia/-/539550/1039360/-/118m01k/-/
     
  2. Mkeshahoi

    Mkeshahoi JF-Expert Member

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    Oct 25, 2010
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    Ufisadi
     
  3. M

    Mnairobi JF-Expert Member

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    Oct 25, 2010
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    huh??
     
  4. M

    Mnairobi JF-Expert Member

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    This is great news,,,,,,,, look at the renders
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  5. M

    Mwafrika JF-Expert Member

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    Oct 25, 2010
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    Waoooo .... this is great guys!

    @Mnairobi ... what's up with this Kiambu county? Would this still be part of Nairobi?
     
  6. m

    matambo JF-Expert Member

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    Oct 25, 2010
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    hongera zao, kama mradi utafanikiwa itakuwa ni aibu kubwa kwa tanzania ambayo imeshakuja na mipango ya namna hiyo chungu tele lakini utekelezaji wake ni sifuri

    kumbuka mradi wa kuibadilsha pwani ya eneo la selander bridge iwe ni sehemu ya kisasa yenye fly-over,shopping malls na majengo ya kisasa ,sijui pla ile ilipotelea wapi, njoo kwenye mradi wa mabasi yaendayo kasi, njoo kwenye treni ya dar es salaam, njoo kwenye pantoni za kuanzia feri kwenda mbezi beach, kunduchi mpaka tegeta na bado kubwa lao mradi wa mji wa kigamboni, yote haya ni porojo miaka kwa miaka

    utekelezaji wa mipango bado ni shida kwa watanzania
     
  7. Gama

    Gama JF-Expert Member

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    Oct 26, 2010
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    nakuunga mkono; hata mradi wa kuboresha makazi yasiyo rasmi haujaonesha matokeo
     
  8. M

    Mnairobi JF-Expert Member

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    Oct 26, 2010
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    Well technically it is not part of Nairobi County but is in the county of Kiambu neighboring Nairobi. This particular county is bound to be the richest county in Kenya.
     
  9. Panga La Shaba

    Panga La Shaba JF-Expert Member

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    Is a good plan ,but what about KIBERA..kwenye population around 2mil....because its about 90% Nairobi people live in KIBERA...
     
  10. Smatta

    Smatta JF-Expert Member

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    What about Kibera? population of 2 million, sir, are you high on something illegal? there's a slum upgrading program (high rises) in Kibera and Nairobi's Majengo as we speak, so no need to worry.
     
  11. M

    Mnairobi JF-Expert Member

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    Kibera has a population of 170,000 as per the last census so no 90% of Nairobians dont live in Kibera
     
  12. SILENT WHISPER

    SILENT WHISPER JF-Expert Member

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    there is a 90% possibility that this can b done in Kenya...! but when it comes to sisi waTz....!! its anyone's guess..!
     
  13. Kinyambiss

    Kinyambiss JF-Expert Member

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    The renderings dont seem to display all the chokoraa kids throwing shit on the 'cream of real estate buyers' lol False economy.
     
  14. Mfamaji

    Mfamaji JF-Expert Member

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    Doctor Slaa will implement them this time .
     
  15. Smatta

    Smatta JF-Expert Member

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    We as Africans tend to fight the wrong battles and place our concerns on things we feel we can ultimately win instead of fighting the things we might lose in hopes of progressin our battle, to you I know you think this real estate plan is impossible, you'd rather settle with the small developments like building of toilet and dispensaries and bus parks that your stagnant mind can comprehend.... Like the proverbial crab, you stay pulling the next nigga down. judging from your juvenile reasoning and insistent shots at your neighbor, I can easily lump you with the haters that we know exist within this forum, who will sh*t on anything Kenyan. tards like you were clowning when we said that KRB were planning to build flyovers and overpasses to reduce the traffic jam at Thika rd, y'all said it was a pipe dream, but now its almost complete and you cant say a word to dispute that. Wait for this mega real estate plan to take off, then mark your check list on how the false economy is fairing.. y'all talk too much.
     
  16. SILENT WHISPER

    SILENT WHISPER JF-Expert Member

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    Oct 26, 2010
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    i agree with u comrade..! we have alot to learn from u guys...! unless we agree that we hv weakness we will neva change..! i hv neva considered kenyans as my enemies ..tho' there are elements withing the kenyan writers and journalist to write so negative abt Tz.
     
  17. eliakeem

    eliakeem JF-Expert Member

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    It is good project. but it should be seen that a normal kenyan benefit out of it.
     
  18. T

    Tata JF-Expert Member

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    Hujataja mji mpya wa kufkirika wa Kigamboni.
     
  19. WiseLady

    WiseLady JF-Expert Member

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    Good move Kenya,i can imagine magnificent city ahead of u.

    Good luck!
     
  20. n

    nomasana JF-Expert Member

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    Oct 26, 2010
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    this is a private venture and the investor is going to do what will have a good return for his money because ot is not up to the investor to worry about the common man

    although it would be nice if there would be such a large project specifically targeted at the poor
     
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