Property developer Fusion Capital has successfully exited its residential development in Athi River, Machakos County, realising double return for investors. The development, known as Graceland Athi River, involved the construction of 80 semi-detached houses and provision of amenities and landscaping in Athi River, a fast growing industrial and residential satellite town close to Nairobi.
Construction work on the project, targeted at middle-income purchasers, began in 2008. Fusion provided Hand-in-Hand Development Limited with a private investment to complete the KSh600 million development. The investment involved an innovative equity-like structure, involving redemption linked to house sales. The Bond was for a seven year period, but Fusion Capital has been able to exit two years early.
“We are delighted to have worked with Hand in Hand to realise their dream of a high quality residential development in Athi River,” Luke Kinoti, CEO of Fusion Capital, said.
The three bedroom houses, each with a separate servants quarter, were designed to appeal to the middle-income market, and were offered for sale at escalating prices through the construction period, with the last houses being sold for around Ksh11 million each.
Hand in Hand is a Kenyan-focused real estate developer, with offices in the UK and Kenya. Grant Smith, Managing Director said: “It is great to get to the end of a good project, it wouldn’t have happened without Fusion’s support. Hand in Hand owns other plots of land in the country, so watch this space!”