Thindigua town is located along Kiambu road, past Ridgeways and Runda , 11km from Nairobi CBD.
The close proximity to Nairobi CBD makes it a very prime area for housing, with several housing estates coming up in the area. The typology is mostly apartment,and land close to the main tarmac road costs in the range of kes 120 m per acre.
Land Availability.
8 acres of prime land, 200m from main tarmac road, within Thindigua town, is available for Joint Venture financing for residential units. See other lands available for Joint venture financing listed here https://www.a4architect.com/land-4-sale-joint-venture/
Number of units.
The 8.3 acres can hold approximately 600 residential units, each with at least 1.5 car parking spaces.
Land owner benefits.
The land owner can benefit by ending up owning at least 200 housing units in exchange for the land. These housing units cost at least kes 1.6 billion. The land that the land owner contributed, 8.3 acres, at kes 120m per acre, is valued at kes 1 billion. Therefore, for a contribution of land value of kes 1 billion, the land owner benefits from houses worth kes 2 billion. This represents a benefit of a minimum of 100%, having doubled their initial investment of kes 1 billion worth of land into kes 2 billion worth of housing.
This makes it a very good business deal for the land owner.
Development cost.
Land.8 acres. kes 1 billion.
Construction cost kes 3.4 billion.
Sale cost. kes 5.5 billion.
Profit at 23% Return on Investment. kes 1 billion.
Sourcing Joint Venture financiers.
A4architect.com links land owners with potential joint venture financiers and also offers joint venture financial advisory services to land owners.
Joint venture financing discussions usually take alot of time in board room negotiations until where the land owner and financier get to a point of agreement in profit sharing, whereby a4architect.com provides guidance in such negotiations. Joint Venture financiers are in several categories, with others preferring small residential projects, others preferring large commercial projects and others preferring mixed use development projects.
Depending on the initial feasibility study on the land as done by a4architect.com, a4architect can then direct the land owners to financiers who are most interested to the type of project that is envisioned.
Architect Francis Gichuhi Kamau.
info@a4architect.com
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