Real estate and investment firm Cytonn has begun construction of a Sh2.5 billion 400-unit gated community in Ruaka.
The project called The Alma is scheduled for completion within three years and targets the middle to lower-middle income homeowners with “discerning tastes” for modern day apartments.
Cytonn is offering the 1, 2 and 3 bedroom apartment options set on the 4.18-acre parcel of land in what it terms “lifestyle community”.
“Our deal pipeline serves the various segments of the market ranging from the high end, such as the Amara Ridge whose construction is ongoing in Karen, to the middle to lower-middle income like The Alma, which will offer a comprehensive lifestyle and a secure community to the future families,” said chief investment officer Elizabeth Nkukuu.
The mixed use complex with 408 modern apartments, a commercial facility, a lifestyle clubhouse and an elevated playground for children is strategically located at heart of the fast-growing Ruaka neighbourhood.
The development is located on the main Limuru Road, 100 metres from the junction of the northern bypass, and a five-minute commute from retail and commercial facilities such as Two Rivers mall, Village Market, and the Rosslyn mall development.
The development targets a capital appreciation of 23 per cent per annum during development period of 130 weeks.
Head of Africa for Finland-based Taaleri Private Equity firm, Antti-Jussi who are financing the project through Cytonn, said the investors were not worried over the oversupply in the real estate sector.
“When you talk about glut or a bubble it’s usually a problem when the sector is financed with bank credit but in our case Kenya’s real estate segment is getting a significant amount of private equity financing which supports it,” he said.
Mr Jussi said with diminishing returns at home, Kenya is likely to see even more investor interest from the United States, European Union, Turkey and Asia looking for prospective projects in the region.
Taaleritehdas, which has cumulatively given Cytonn Sh2.5 billion, plans to invest up to Sh3 billion in Kenya’s real-estate market with its $60 million (Sh6.4 billion) Africa-focused fund.
Cytonn Real Estate, is currently running more than Sh57 billion in real estate projects.