Pan-African housing development financier, Shelter Afrique and HF Group subsidiary, HF Development & Investment Limited (HFDI), have completed the development of the Ksh 990 million Richland Pointe, which targets the growing middle-income population.
The modern apartments located along Kamiti Road in Kiambu County, are developed under a joint venture vehicle, Richland Development Limited, between HFDI and Richland Dam Estate Limited.
Under the arrangement, Richland Dam Estate Limited provided land where the project sits on whilst HFDI provided equity equivalent to the land and Shelter Afrique provided debt to the tune of Ksh 700 million.
“The completion of Richland Pointe reinforces Shelter Afrique’s strong partnership with HF Group and our joint commitment to the development of affordable housing in Kenya. The Richland Pointe project is a continuation of our relationship with HF Group,” said Shelter Afrique Chairman Daniel Nghidinua.
“In 2012 Shelter Afrique approved Ksh 647 million to HF Group for the development of 165 units in Komarock Phase 5A. A further Ksh 930 million was advanced to HF Group for the development of Komarock Phase 5B and K-Mall.”
Nghidinua was speaking at an event to officially launch the project with HFDI following its completion.
Shelter Afrique Managing Director & CEO Andrew Chimphondah said the challenge now was for developers and financiers to come up with housing models that would address the middle to lower end of the market.
“Ksh 8.5 million or Ksh 9.5 million is still way up there and is out of rich for many Kenyans. As developers and financiers we need to think of how do we bring down housing costs to below Ksh 4 million- and its achievable,” added Chimphondah.
HF Group Managing Director Robert Kibaara said that HF is committed to making affordable home ownership possible for Kenyans, adding that the Group is currently running a property sales promotion dubbed Shika Nyumba na HF, which seeks to make existing properties even more affordable to potential buyers locally and in the diaspora.
“We have reduced prices up to 30% on some of our properties in various prime locations in Nairobi and its environs. These include properties owned by HF and those belonging to developers whom we have financed. Our ambition is to make home ownership a reality for the middle-income market segment,” said Kibaara.
In addition to the discount offer, HFC, HF Group’s banking arm will extend financing options to prospective buyers. The property comes with lifts, backup generators, secure boundary walls and is well oriented on sloped terrain to give a pleasing view of the spacious affordable apartments.