Project Overview

Location

Nairobi, Upperhill

Type

Residential Housing and Serviced Apartments

Feature Details

Residential Housing and Serviced Apartments

Description

OVERVIEW OF EXECUTIVE SUMMARY

Market Research Findings:

The following are the main findings of the market research and feasibility study:

a.) Residential Development

  • The demand for residential apartments is high due to the presence of demand drivers in the subject property area, and the area can therefore accommodate more residential apartments due to the high occupancy rates, relatively high prices for properties for sale, and the changing market segmentation from office space to residential investments.
  • The uptake and occupancy rate of apartments in Upperhill has been performing averagely better and within the average of other Upper-Mid and High-End suburbs of Nairobi, with the annual uptake averaging at 20.0% and occupancy rate for apartments averaging at 81.0%.
  • The return on investment for residential apartments in the area is above market average.

b.) Serviced Apartments.

  • There is high demand for serviced apartments in the area, due to presence of demand drivers in the subject property area, with some hotels and residential units found to convert to serviced apartments.
  • There is an undersupply of serviced apartments in the area market, this being a favorable investment market indicator for serviced apartments.
  • The subject area around the Mawensi Road is a growing hospitality area due to its serenity, and viable for serviced Apartments; the new trend around this area, replacing the ailing hotel industry.

Financial Analysis

The proposed venture is viable due to:

  • An IRR and Return on Equity that is above market average.
  • A positive NPV.
  • Projected positive Cash Flows through the first ten years.
  • A short payback period at 4 years.
  • A high return on investment

Investment Plan & Details

Capital Structure

Investment Cost / Value

$8,971,962.00

Sponsor Equity Contribution

$1,495,327.00

Asking

$7,484,271.00


Offering Type

Offering Type

Equity Joint Venture

Investment Type

Residential and Serviced Apartments


Return on Investment

Investor Returns(IRR)

21%

Equity Multiple

3.4 X

Monthly Income

-

Return on Equity

4 Years


Investment Hold Period

Payback Period / Hold Period

4 Years

Inception Date

2022/01/03

Investments Documents

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