HF to build 220-unit Kahawa Downs estate in Kiambu

model of the Kahawa Downs apartments
A model of the Kahawa Downs apartments.PHOTO/COURTESY
Housing Finance (HF) has signed a joint venture agreement that will see the mortgage lender co-own a housing project with a land owner in Kiambu County.

Under the joint venture, the land owner will contribute the land on which 220 housing units will be built while HF will contribute finances for construction of the Kahawa Downs apartments.

The gated community sits on a 5 acre piece of land, just a kilometre past the Kahawa Barracks and about 100metres off Thika Road.

It comprises 2 and 3 bedroom apartments that will be sold at between Sh5million and Sh6 million on completion by December 2015.

The shareholding between the two partners will be determined after both the value of the land and the cost of development are calculated by professionals.

This is the second JV project between HF through its subsidiary Kenya Building Society (KBS) and a land owner.

(READ: HF partners with land owners to deliver homes)

Precious Gardens in Riruta was the mortgage lender’s first JV project where HF partnered with a land owner to build 328 housing units comprising 1, 2 and 3 bedrooms. Sources privy to the agreements say that HF has invested Sh1.2 billion in the project.

On May 9, 2012 HF officially revived KBS – ending a thirteen year dormancy period – in a bid to cash in on the lucrative property development market.

(READ: HF revives construction subsidiary)

The lender’s decision to return to the house development market is informed by the huge profits real estate developers are making thanks to a huge shortfall in homes supply, estimated at two million units.

HF managing director Frank Ireri said the lender had embraced the concept of JV to further raise its involvement in the supply of affordable housing in the country.