Housing Finance Group has embarked on a Ksh5 billion project to put up 1,520 apartments along Thika Road. The apartments will be built at the former Clay Works area off Thika Road in a joint venture with Clay Works Limited which owns the land. The project will sit on 24.5 acres and will be built in three phases. Phase one will occupy 8.6 acres, phase two on 10.5 acres and phase three on 5.4 acres.
Mr James Karanja, the Executive Director of HFDI, the property development and investment subsidiary of HF Group, said the two bedroom units will sell from Ksh6.5 million, while the three bedroom units will go for Ksh7.5 million. “The first phase will see the construction of 560 units; the second phase will be of 480 units and the third phase will also see the development of 480 units,” Karanja said.
Phase one is expected to be complete by the end of 2019, adding to the variety of apartments in the market around Nairobi. The houses are targeted at the middle class market and other investors seeking to rent out the units. HFDI has been pursuing a joint venture model where it partners with land owners and provides the financing to develop residential and commercial units citing the rising cost of land in the city.
The Clay Works development was initially announced in February together with another project involving parceling of 183-acre serviced plots scheme in Ruiru. Other HFDI projects include Komorock 5A &Komarock 5B (maisonettes), Komarock Heights (apartments), Richland (apartments) along Kamiti Road, Precious Gardens(apartments) in Rirutaand K Mall.
The real estate projects are part of HF Group’s strategy to grow and diversify its business that has previously relied on financing purchase and construction of houses and commercial buildings.
The Clay Works project will have extra amenities to help it compete with other similar projects around the city. “The project as a whole will offer a serene neighbourhood with lots of park-like greenery, secure play grounds for children, ample parking and lifts that will give the residence a homely feel,” Karanja added.
A shopping centre and a kindergarten will also be built during the last phase of the project. Developers are putting up more apartments in Nairobi and its satellite towns as the cost of land makes it less viable to build standalone units targeting the middle class.