The two institutions signed the agreement yesterday to finance the construction of Kahawa Downs, a joint venture between
Kahawa Downs will deliver 220 units of two-bedroom (70) and three bedroom (150), which are being built in 22 blocks of 10 units each. The development sits on five acres of land at Kahawa Sukari on
HF's subsidiary KBS is managing the project in which the mortgage lender has contributed Sh105 million. Construction started last November and will cost about Sh1.2 billion to complete, according to KBS executive director
"The development's market value is about Sh1.5 billion," said Karanja.
Units are for sale at Sh5 million and Sh6 million each for the two- and three-bedroom respectively, which has seen bulk-buying by buy-to-let investors and speculators seeking to flip at a higher price (capital gains) by completion.
"Growth of the middle class, rapid urbanisation and emergence of growth centres in counties has presented business opportunity for private and public sectors to provide housing to meet increased demand," said
"Our interest rates to commercial clients are below market rates to enable them pass over the benefit to end-buyers," she said.
Kahawa Downs is HF's second joint venture having struck the first in Riruta Satellite that will have 328 units of one- to three-bedroom. The JV - christened
"We have a pot of
Under the new product, it has already lent
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