Mortgage Financier HF Group handed over the first 80 apartments of its Sh5 billion development along Nairobi’s Thika Superhighway to buyers. The firm is pushing forward with its plan to construct a 1,520 housing unit estate in Nairobi. The Sh700 million project was launched in 2018 and it is built under a joint venture with Clay Works Limited that owns the land. HF group had fully financed the development. The project which stands on 24.5 acres will be constructed in three phases. The first phase is set on 8.6 acres while the second phase is set on 10.5 acres and the third phase is set 5.4 acres.
The 110 square metres 3 bedroom units are going for Sh 8.6 million. The apartments come with a separate dining area, spacious en-suite, all bedrooms with inbuilt wardrobes and provision for solar water heating systems. The development will also have ample green landscape areas with children’s play area, secure boundary wall with electric fence and cabro-paved driveways within a gated compound. The first phase will see the construction of 560 units while the second phase will consist of 480 units and the third phase will see the development of 480 units.
The second phase of Clay City is committed to the development of affordable housing units. This is in line with the Group’s strategic focus and once completed it will have approximately 800 units which will consist of one, two and three-bedroom apartments. Robert KIbaara, the Managing Director of HF Group said that the company had signed a strategic partnership agreement with the government. This will see that the projects will receive subsidies leading to lower property prices. The incentives will include a tax-exemption on all building materials and exclusion from charging sales tax duty. This will be available to developers of mass housing projects.
Mr Kabaara said that all investors who have bought off-plan homes with HF Group will have their homes delivered as per agreement. The firm was reassuring its homebuyers who had fears that they might lose their dream of becoming homeowners after the company decides to exit the construction business early this year. The move to exit the construction business is aimed at cutting exposure to the real estate market that has slowed down considerably in recent years.
“While there is no doubt that the real estate market in Kenya has slowed down in the last few years, we have put in place aggressive marketing strategies including the Shika Nyumba property sales campaign to drive the up-take of Clay City, as well as other housing developments under our portfolio,” said Mr Kabaara.
The company has been operating a joint venture model where it partners with landowners and facilitates the finance of the development of residential and commercial units in a bid to circumvent the high cost of land in Nairobi. The business is presently focused on its efforts on mortgage financing to end buyers as part of their turn-around strategy that is already showing positive results. The firm is one of the players that have invested in the Kenya Mortgage Refinance Company (KMRC), which is set to unlock funds for lending to developers and buyers.
Mr Kabaara said that the company is committed to the affordable housing agenda and it will continue to collaborate with partners in both the public and private sector. The collaboration is aimed at delivering on this fundamental human right and will make homeownership a reality for the majority of Kenyans.