Proposed Apartments, Ruaka, Kiambu County
The investment project entails two (2) bedroom apartments.
- Spacious residential apartments of 92 Square Meters.
- The overall cost of the Project is Kshs. 154,825,954.00
- Investment Offering is for Equity Investor for Equity Return – at minimum investment of Kshs. 10,000,000.00
- Investor’s Internal rate of return is projected at 23% per annum.
- Investor’s Equity multiple is 1.65X
- Targeted holding period is expected to be 1.50 years.
- Expected project commencement date is 4th April, 2024
Ruaka Town, Kiambu County
Two Bedroom Apartments
OVERVIEW OF EXECUTIVE SUMMARY
Market Research Findings:
The following are the main findings of the market research and feasibility study:
a.) Residential Apartment
- 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 high rental yield for rental housing.
- The uptake and occupancy rate of apartments in Ruaka has also been performing averagely better and within the average of other Middle-Level suburbs of Nairobi, with the annual uptake averaging at 25.0% and occupancy rate for apartments averaging at 95.0%.
- The return on investment for residential apartments in the area is also above market average.
The proposed venture is viable due to:
- An IRR and Return on Equity that is above market average, at 24% and 23% respectively.
- A positive NPV.
- Projected positive Cash Flows through the first ten years.
- A short payback period of 1.5 years, for Sales Return Investment.
- A high Equity multiple of 1.65 X.
- A High Rental Yield of 19.83%, compared to Market Average of 8.0%.
- An overall high return on investment
Investment Plan & Details
Investment Cost / Value
Sponsor Equity Contribution
Real Estate Development Equity Returns
Return on Investment
Return on Equity
Investment Hold Period
Payback Period / Hold Period