Proposed Residential and Serviced Apartments, Upperhill, Nairobi
The investment project entails residential and serviced apartments.
Key Points:
- Executive residential and serviced apartments.
- The overall cost of the Project is $8,971,962.00.
- Express interest is for Equity Financing is $7,484,271.00
- Investor’s Internal rate of return is projected at 21% per annum.
- Investor’s Equity multiple is 3.4X
- Targeted holding period is expected to be 4 years.
- Expected project commencement date is 3rd June, 2024
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
KSHS. 980,817,000
Sponsor Equity Contribution
KSHS. 180,000,000
Asking
KSHS. 20,000,000.00
Offering Type
Offering Type
Equity Joint Venture Returns
Investment Type
Residential and Serviced Apartments
Return on Investment
Investor Returns(IRR)
22%
Equity Multiple
3.4 X
Monthly Income
-
Return on Equity
20%
Investment Hold Period
Payback Period / Hold Period
4 Years
Inception Date
2024/06/03
Investments Documents
Document
High Level Business Plan