Month: April 2016

Mombasa road Nation Printers area is approximately 18 km from Nairobi CBD.

The area has upper middle class apartment type of buildings. Its very attractive to the upper middle class due to its easy access through Mombasa road and Syokimau Railway.

Noteable residential developments in this area are 360 apartments, Olnyori apartments and Great Wall apartments.

Olonyori Apartments.

The land is valued at kes 600 million.
Construction cost inclusive of land is kes 4.9 billion.
Sale value based on the 360 apartment units prices is kes 6.1 billion.

Net Profit.

Net profit is kes 1.2 billion.

The land owner gets a kes 1.2 billion take home amount in terms of rentable residential units.
With the current rental value of kes 25000 to kes 30, 000, the land owner can choose to keep his units and get a monthly rental income of between kes 4.5million to kes 5.5 million monthly or to sell the units at market rate and get kes 1.2 billion as take home value.

Land Value.Kes 600,000,000.
Construction cost including land. Kes 4.91 Billion.
Sale Value based on average market rate for the area. Kes. 6.18 Billion.
Profit. Kes 1.27 Billion.
Land Owner Take Home amount is Kes 1.27 Billion.
Land owner can choose to rent out his share of the units at between Kes 4.5 million to Kes 5.5 million per month or sell at kes 1.27 Billion or part rent and part sell depending on their convenience.
Typology.
Apartment Block.
Number of storeys. 5
Number of carparks per unit. 1.
Number of total car park slots. 1000.

Architect Francis Gichuhi kamau.
info@a4architect.com

Joint Venture financing for construction projects is a process where the land owner contributes their land and a financier is sought to bring in construction finances then the two parties share the profits at an agreed percentage based on their mutual agreement.

Shorter time to bring in profits.

Joint venture construction projects enable the land owners to bring in profits to their property within a shorter time compared to developing on their own without financiers. Land on its own doesn’t bring in income no matter how high its valued. Land becomes income generating when used eg for agriculture, real estate etc.Joint venture financing works well for lands located in prime areas around Nairobi where real estate income is high. A land owner can reap maximum profits if they developed their land fully, building vertically upwards to as many storeys as the market can be able to take. In Nairobi CBD, Westlands, Upper Hill, etc we now have buildings over 40 storeys, most being developed through the joint venture financing method.

Maximum utilisation of land for higher profits.

A land owner on their own will be limited financially to develop their land to the maximum , hence reaping lower profits due to the low rise and low density utilization of their land. With joint venture financing, they can easily develop their land to the maximum and get higher profits.
For example, a 1.6 acre land along Rhapta Road, Westlands, valued at kes 700m, can bring in kes 1.9 billion to the land owner through the joint venture financing method within 3 years. Any other way to bring in income by the land owner using the land will fall short of this. If the land owner decides to sell, they can only get kes 700m. If they decide to develop, the financing of 20 storeys, costing kes 2 billion will be a tall order for an individual land owner. If they decide to build a few apartments and rent, the total rental income will be low. Only a joint venture option can be able to increase their net property value to kes 1.9 billion within such a short time.

zero percent contribution.

The land owner contributes only the land, with no requirement for any other contribution. With such conditions, joint venture financing enable the land owner to increase their property value with very low capital requirements unlike other methods eg borrowing from banks and selling. The complications of hiring architects, quantity surveyors, engineers etc and supervising contractors is also removed in joint venture financing deals since the financier can come with this team.

Sharing profits.

A limited liability company special purpose vehicle is formed between the land owner and the financier where the financier owns a percentage of shares as agreed upon between him and the land owner, for example, 70% vs 30%.
The land owner and financier enters into negotiations to determine the percentage of profit sharing until they come up to an agreement. The percentage is normally within the range of 20 to 40% for the land owner and the rest for the financier.
The financier’s percentage includes the finances that go into actual cost of construction.

Charge on property.

Most financiers end up charging the land title deed to commercial banks for loans. The cost of financing, bank interest, should be totaled up to the total cost of construction financing such that the land owner and financier share the profits after the cost of financing has been included and totaled up with other costs of constructing. In case more financing than anticipated is required, the cost of the additional financing should be added up towards the total cost of construction. The profit is derived after all inputs into he construction are added up and the units sold to the public, with the remainder as profit. A good return on investment should be at the minimum of 23.5%.

Sourcing joint venture financiers.

Financiers for joint venture should have a proven track record of completing their projects to satisfaction between them and the land owners. Proof of financial capability is crucial in enabling the land owner to feel comfortable and confident to move on with negotiations and transfer their land to the joint company special purpose vehicle formed for the joint venture. a4architect.com has a list of joint venture financiers who have successfully completed projects around Nairobi of a similar nature. a4architect.com also lists land owners seeking to negotiate with financiers on joint venture partnerships.

See the Joint Venture land list here.

https://www.a4architect.com/2016/04/land-available-joint-venture-financing-nairobi/

a4architect.com facilitates the negotiations and offers Architecture design and construction Project Management services towards the joint venture projects for successful completion.

Completed projects.

4th Ngong Avenue towers.

Everest Park Apartments, Athi River.

Sifa towers, Nairobi.

Belcrest court, South B.

Architect Francis Gichuhi kamau.
info@a4architect.com

1/8th Plot for Sale, Sabaki, Behind Mlolongo town, Mombasa road.

The plots are located 30 km from Nairobi CBD.

Price guide. kes 1.8m

Map.

[googlemaps https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d2540.0419722471215!2d36.956715143269946!3d-1.401107067154247!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x0%3A0x0!2zMcKwMjQnMDQuMCJTIDM2wrA1NycyOS45IkU!5e1!3m2!1sen!2ske!4v1460113437123&w=400&h=300]

Email info@a4architect.com

1.8 Acres, Jakaya Kikwete Road, Near Anti corruption Hq, Sagret Hotel. Kes 600 m per acre.

50 acres Katani next to Brighton School. Kes 12m per acre.

Gathiga, near ISK.Gathiga land is in Kiambu county, approximately 4Km from ISK ( international school of Kenya ) and approximately 2Km from New Kitisuru Estate.The land has two road accessing it.Size 4.5 acres Price 160million slightly negotiable,the land is ideal for villas. https://goo.gl/maps/ekgbKatY4BD2

Kikuyu.Kikuyu Road ,Size 1Acre asking price 130m ,has a sewer line, bore hole ,touching tarmac, red soil.Ideal for high rise apartments.1km from Naivasha Road Junction.

Upperhill. Land for JV. Next to Don Bosco church. 2 acres.

Upperhill. Land for JV. Next to Don Bosco church. 0.25 acres.

Upperhill. Land for JV. Near Geomaps building. 2 acres.

Upperhill. Land for sale. Matumbato road . 1 acres.

1/4 acres for Joint Venture along Colonel Ngere road, Kibiku, Ngong.

2 Acres Beach Front opposite Rea Vipingo, Coast for sale. Kes 20m per acre.

50 by 100 ft Plot in Ruiru town, next to Police Station, seeking for Joint Venture financing.

Waiyaki way, Gitaru, touching tarmac. 3/4 acre for JV. Currently housing School.

 

Naivasha, next to Ushers Restaurant, Naivasha, touching Nakuru Naivasha, Nairobi Highway. 20 acres available for JV. Currently housing a school.

 

1/4 acre available for JV along Muhuri Rd off Waiyaki Way. See map here  https://goo.gl/maps/UFxEgkgdSDN2

Mombasa, Nyali, next to Gichanga estate. Land available for JV.

Kitengela, next to Yukos, 3/4 acre land available for JV.

Ongata Rongai, opposite Laiser Hill academy. 4 acres available for Joint Venture.

Waiyaki way, Musa Gitau road.  1 acre kes 250m.

 

Runda, Glory road, near Mumwe Oak School, 3 acres for sale. kes 70m per acre.

1/4 Acre Ruaka town for JV.

https://goo.gl/maps/1GNJ6P7jV6H2

 

Kileleshwa. Apartment for sale. 4 bedrooms. 1700 sq ft. kes 18.5m.

https://www.a4architect.com/2017/02/kileleshwa-apartment-for-sale-kes-18-5m/

 

Kibichiku, Lower Kabete, 1/2 acre plot for sale. kes 11m.

Ngong. kibiku road. House for sale. Bedrooms 3 . All enSuite, with  garage, sq, store, solar for back-up, perimeter fence.Asking 13m.

50 x 100 Eastleigh, Section 3, available for Joint Venture.

Coast. Prime land on Lamu Road Malindi on which is already developed a hotel at the back known as Seaview Resort. We are interested in a joint venture to develop commercial premises on the street front and residential apartments at the back.

Thika. 8 acres of  land situated in Thika. It’s about 32kms from Thika town and 7kms from Thika/Garissa road.  I would like to do joint venture with a company or individuals wishing to do any business like farming, construction of a school, hotel etc.

1.3 acres opposite Yaya centre. kes 700m.

2.3 Acres Kindaruma rd. kes 1.2 billion.

2.1 acres Kindaruma rd. Kes 1.2 billion.

0.75 acres Agwins Kodhek road, behind Radar security. kes 300m.

0.75 acres Kindaruma road. Kes 400m.

0.75 acres Kileleshwa, Nyeri close. Kes 350m.

0.72 acres Kiambere road Upper Hill for sale. kes 400m.

Syokimau next to Suraya Encasa project. 10 acres available for Joint Venture.

Kikuyu, near University of Nairobi Kikuyu Campus, 4 acres for Joint Venture.

Karen, near Nyumbani childrens home, The Hub shopping mall, touching tarmac. 5 acres available for Joint Venture.

Kamiti road, Near Jacaranda estate. 0.6 acres available for Joint Venture.

Lavington, Gatina, Amboseli road. 3/4acre at kes 130m negotiable.Behind St Francis Catholic church.

Meru, Makutano. Land available for Joint Venture.

Rironi, near Sigona Golf club, opposite The Swatch Place. Touching tarmac. 0.5 acre for Joint Venture.
Rironi. 2nd row. 0.5acre plot for Joint venture.Opposite swatch place.

Thogoto, Touching Southern Bypass. 34 acres available for Joint Venture.

Thogoto, Touching Southern Bypass. 4 acres for sale.

Namanga. 20 acres for sale.

Nakuru CBD opposite Nakuru Athletics club. 1 Acre for Joint Venture.

Buruburu 4 acres for JV

Kambaa . 3 acres for JV.

https://goo.gl/maps/LocouxMc2BT2

Kisumu, Riat Hills. Land available for j.v 1 3/4 acre

0.5 Acres in Thindigua town for Joint Venture.

Rongai behind Nazarene Uni. 6 acres and 34 acres available for Joint Venture.

Denis Pritt road. 0.5 acres for JV

Riruta Wanyee road. 1/4 acre land for Joint Venture.

Kilimani, near China Wu Yi Building.Galana road. 0.8 acre for joint venture financing available.

Kitengela. 140 acres. 4 km from main tarmac road opposite epz. for jv and sale.

KAREN. 10 Acres Behind Karen community church for joint venture.

Riverside Drive, Westlands, 3/4 acre for joint venture.

Thindigua. 8 acres near main tarmac road available for Joint Venture.

Ngara. 0.3 acres available for Joint Venture.

Karen. 5 acres fronting tarmac opposite St Marys Karen primary school.
Karen. 7.5 acres. Mwitu road available for J.V.

Westlands. Rhapta rd. 1.6 Acres available for J.V.

Wanyee road, Nairobi. 1/4 acre plot for Joint Venture.

Waiyaki way, near Magana flowers. 6 acres for J.V.

1 acre next to University of Nairobi Kikuyu campus for Joint Venture.

1/8th acre along Southern Bypass opposite Alliance girls school touching tarmac. Suitable for Joint venture options.

1 acre at Sigona opposite Sigona golf club available for Joint Vneture.

0.5 acre upperhill behind Oxford university press available for Joint Venture.

4 acres Upper Hill near Crowne Plaza Hotel for J.V. Franchise with Taj Mahal hotels ready.

10 acres Red Hill 0.5 km from tarmac available for Joint Venture.

8 acres next to state house road Nairobi available for JV financing.

28 Acres next to Kasarani Stadium for J.V.

32 acres fronting Thika road for JV located next to K.S.M.S/De La Rue.

Kilimani . Elgeyo Marakwet road. 1 acre for j.v.

Runda. 7.5 acres next to Runda Paradise estate for J.V.

WESTLANDS 0.9 ACRE Plot for Executive High End APARTMENTS / Office development, Mixed Use ON SEWER
Enquire

KILIMANI 1 ACRE Plot for Executive High End APARTMENTS / Office development, Mixed Use ON SEWER
Enquire

UPPERHILL 2 ACRE Plot for Executive High End APARTMENTS / Office development, Mixed Use ON SEWER
Enquire

LAVINGTON 1ac for JV, mbaazi rd/sale 350m

RIVERSIDE 2.5ac for JV, For Office/ Mixed development

KILELESHWA Oloitoktok Rd 0.6ac JV

Kileleshwa. 1 acre for J.V

2.5 acres Mombasa road next to panari touching main road

Syokimau. 5 acres next to 360 apartments for sale or j.v.

1/10th acre plot for sale off Outer ring road along Manyanja road for sale.Price guide.kes 8.5m.
Joint venture options also considered.

10 acres Mombasa road next to Nation Printers for J.V

0.75 Acres Kilimani opposite Menelik hospital for J.V

3 Acres Upper Hill Matumbato road for JV.

34 Acres Ngara for JV.

116 Acres along Jogoo road for JV

Karen. Opposite Catholic University, adjacent to Apostles of Jesus , St. Thomas Aquinas Major Seminary. 3 acres for Joint Venture.

Karen. Along Southern Bypass, between Southern bypass and Miotoni road, next to Kenya Forest land. 5 acres for J.V.

SALE.
Karen. 12 acres along Fair Acres road for sale.

0.75 Acres behind The Junction Mall for sale.

Land For Sale.

2 acres for sale in Kinanie shopping centre, 8km off mombasa rd. 3m per acre.

1.6 acres behind Guava bar, Buffet park, Hurlingham. kes 700m.

1 acre next to Kianda school , opposite Egyptian Embassy. kes 200m.

1.3 acres opposite Yaya, touching Argwings Kodhek road. kes 700m.

2.3 acres at corner of Rose Avenue and Kindaruma road, opposite Top Plaza. kes 1.2 billion.

2.4 acres at corner of Ndemi rd and Muringa road, Kilimani. kes 1.2 billion.

1 acre next to Cavina School, Elgeyo Marakwet road/Argwins Kodheck road. kes 300m

Kilimani Mbaazi road. 1.7acres. kes 550m.

Kilimani Elgeyo Marakwet, Kilimani road. 1.5 acres. kes 650m

Lavington. Njumbi road. 1/4 acre with house. Current income kes 300,000. Sale price. kes 80 million.

3 bedroomed apartment flat units for Sale South C, next to Southern Bypass.

Map.
[googlemaps https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d1191.4124726051634!2d36.81745609748888!3d-1.3314850251504018!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x0%3A0x0!2zMcKwMTknNTMuNCJTIDM2wrA0OScwNS43IkU!5e1!3m2!1sen!2ske!4v1459840410474&w=400&h=300]

Price. Units fronting Nairobi National Park. kes 17m. Units facing Wilson airport. kes 21m.

Email info@a4architect.com

6 Bedroomed Maisonette for Sale, Rongai. Opposite Nazarene University.

80% complete.

Price guide.kes 26 million. kes 18 million

[googlemaps https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d924.6311984191861!2d36.78134453883871!3d-1.3951894673783238!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x0%3A0x0!2zMcKwMjMnNDIuNyJTIDM2wrA0Nic1NS4xIkU!5e1!3m2!1sen!2ske!4v1459840067080&w=400&h=300]

Email info@a4architect.com for more info.

Karen Shopping Centre Joint Venture construction for development of office block.

Karen shopping centre is located 12 km from Nairobi city Central Business District.

Currently, there are 3 new office/commercial blocks which have come up recently in Karen, namely The Hub, Watermark business park and Zamani Business park.

The Hub.

Watermark.

Zamani.

Sale value.
Sale value is in the range of 120,000 to 150,000 per square foot of built up area.

Land size.
The current land for development is 5 acres.

[googlemaps https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d3235.6686127393564!2d36.70550461408983!3d-1.323622136039744!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x182f1b6f40f90603%3A0x3e5125cf47aa82be!2sSakes+Enterprises+Ltd!5e1!3m2!1sen!2ske!4v1459756290254&w=400&h=300]

Construction cost.

The construction plinth area is set at 60,000 m2.
The cost of construction without land value is kes 4.3 billion.
The land value is kes 500 million.

Joint venture take home.

The land owner has a possibility of taking home kes 2 billion including land value after the Special Purpose Vehicle deal is completed.

This represents a whooping 200% increase for the land owner from the initial contribution of kes 500 million.

This kes 2 billion take away represents a very profitable deal for the land owner.

Architect Francis Gichuhi kamau.
info@a4architect.com

Before construction.

After construction.