Location

Ruaka Town, Kiambu County

Type

Residential Apartments

Feature Details

Two Bedroom Apartments

Description

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.

Financial Analysis

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

Capital Structure

Investment Cost / Value

KSHS. 154,825,954

Sponsor Equity Contribution

KSHS. 26,500,000

Asking

KSHS. 10,000,000.00

Offering Type

Offering Type

Real Estate Development Equity Returns

Investment Type

Residential Apartments

Return on Investment

Investor Returns(IRR)

24%

Equity Multiple

1.65 X

Monthly Income

-

Return on Equity

23%

Investment Hold Period

Payback Period / Hold Period

1.5 Years

Inception Date

2024/05/03

Document

Website