NAIROBI, KENYA
Kenya’s housing low-cost developer Jamii Bora Makao (JBM) has partnered with Urbanis Africa in a management outsourcing arrangment to improve delivery of houses to low-income earners.
Urbanis Africa, a real estate development and management agency, will provide management services to Jamii Bora Makao, including senior staff in operations and strategic management.
The Pan-African housing company based in Kenya seeks to provide affordable housing solutions to urban populations in Africa by establishing a Special Purpose Vehicle (SPV) for each project it initiates.
“The purpose of setting up a separate legal structure for each investment is to provide each project a different group of investors and lenders who are exposed exclusively to a single project,” said Jamii Bora Makao CEO Wagane Diouf, adding that each SPV will have its governance and allow the investors to have a direct oversight on the project.
With Urbanis outsourcing all its functions to specialized firma and consultants due to lack of permanent structures, this, according to Diouf creates an ecosystem for every project. However, standards and controls are designed centrally.
“Implementation is devolved to the SPV to act as the project manager, and through the SPV to the contractors and outsourced professionals at the construction level, said Diouf. Diouf expressed delight in the deal saying that the agreement will ensure that JBM delivers quality service to its customers while spawning the shareholder value.
“We are delighted to have the opportunity to help Jamii Bora Makao reach new heights. We are confident that through our involvement the company will be able to deliver quality housing to its clients while generate shareholder value,” he said during the signing.
Lars Olof Helgren, the chairman of Jamii Bora Makao, said the entry of Urbanis Africa represents a strategic partnership for its shareholders. “We share the company’s vision and approach to management of real estate projects,” said Helgren.
“Through the relationship with Urbanis, we expect to achieve our objective both from a social perspective and financial returns.”
Founded in 2007, Jamii Bora Makao provides affordable housing to low-income Kenyans. The company has built 750 housing units in Kaputei Town near Isinya off Namanga Road to date, with infrastructure, primary and secondary schools and is currently building 2,000 units.
Urbanis Africa also manages Kenani Housing Company, which is mandated to build a new city meant to fortify the status of Athi River. Kenani Housing Estate, located in Athi River 37km from Nairobi, is a self-contained community of middle and low income housing.
The estate has been planned to accommodate three and four bedroom maisonettes targeting middle income families with children, two and three bedroom apartments targeting middle income first-time home owners and 3 to 2 roomed flats targeting low income population.
The prices range between Sh1.5 million at entry level and Sh7 million at the high-end. Urbanis is pursuing similar affordable housing developments in East and Southern Africa.
Urbanis designs affordable housing projects and creates a network of real estate professionals to implement and promote these projects. The company gets a development fee from these arrangements.
Also, Urbanis acts as an investor by injecting between 20% and 50% of the equity required in the projects it leads.
