JOINT VENTURE FOR DEVELOPMENT OF HOUSES FOR SALE IN KENYA

JOINT VENTURE FOR DEVELOPMENT OF HOUSES FOR SALE IN KENYA

Prism Designs Africa www.a4architect.com offers Joint Venture partnership with land owners in order to develop houses for sale within Kenya.
This Joint Venture is financed by Shelter Afrique bank on a 50-50 sharing on the proceeds from sale of the houses. The land owner is then granted an additional amount being the value of the land.

ELIGIBILITY
Prism Designs Africa will first carry our preliminary project structure to ascertain viability. Basically, the debt ratio should be as per Shelter Afrique’s requirements and the plot location should be in an area where the houses can attract buyers once constructed.
To be eligible for the Joint Venture, the land must be a minimum of 5 acres for land suitable for apartment development and 10 acres for land suitable for bungalow and maisonette development.
The larger the size of the land, the higher the chances of the project being eligible for the Joint Venture.
Lands situated in middle to low cost areas also have a higher chance of eligibility than lands in high-cost areas.

HOW IT WORKS:

LAND OWNER

1. The land owner expresses willingness to Prism Designs Africa www.a4architect.com to get into a Joint Venture for construction of houses for sale on his land.
2. Prism Designs Africa www.a4arhcitect.com visits the land site and carries out a feasibility study to determine the most viable options available and the cost of the project.

15% OF TOTAL PROJECT COST

3. Prism Designs Africa www.a4architect.com calculates 15% of the total construction cost. The land owner is supposed to bring in 15 % of this total cost. If the land value is less than 15% of total project cost, Prism Designs Africa will contribute Professional services [Architecture, Quantity Surveying, Structural Engineering, Mechanical Engineering, Civil Engineering and Electrical Engineering] to top up the balance.
4. Once the contribution of 15% of total project cost is reached, Shelter Afrique bank arranges for financing of the remainder of the costs.

50-50 PROFIT SHARING + REFUND OF COST OF LAND

5. Once financing is secured, construction and off-plan sales of the houses commences . Once the houses are complete and sold out, the profits are shared equally between Shelter Afrique bank and the land owner. The land owner is given a further amount to cater for the value of the land.
6. The land owner can now settle the amounts contributed by Prism Designs Africa www.a4architect.com in raising the contribution to 15% of the total project cost.

COMMISION AGENTS

Prism Designs Africa www.a4architect.com recognizes the value of commission agents in sourcing for land owners who require Joint Venture partnerships with developers.
Prism Designs Africa offers 1% of the construction cost as agency fees to these commission agents.
Usually, the construction costs run into hundreds of millions of shillings since the minimum construction costs to be eligible for this Joint Venture partnership is KES 200,000,000. In this case, 1% of KES 200,000,000=KES 2,000,000.00.

For more information regarding this, contact Prism Designs Africa www.a4architect.com.

Francis Gichuhi Kamau
Architect.
Prism Designs Africa
www.a4architect.com
+254721410684

Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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  11 comments for “JOINT VENTURE FOR DEVELOPMENT OF HOUSES FOR SALE IN KENYA

  1. frank
    August 8, 2011 at 3:26 pm

    Feel free to put in your comments below.

  2. marion
    August 14, 2011 at 9:42 pm

    hallo
    please email me more details of the jointt venture.what are the areas that can be eligible for funding?also 15% of 200m is 30m.what is the leasta land owner can contribute and what is the most you guys can contribute to top up to 15%

    if the land is worth 30m does it cover the 15%or is the landowner supposed to have 30m in cash?
    can somwone give other equities?

    • frank
      August 15, 2011 at 5:34 am

      The areas eligible for funding are areas where if houses are developed for sale, people will be able to buy. We will vsit the land and once we view it, we will be in a position to advice you if the land is eligible or not.
      For the 15% equity, there is no least-we structure the project to get the best balance between the value of the land, value of consultancy and Shelter Afrique’s capital injection.
      This is a Joint Venture whereby the land owner contributes the land, we contribute consultancy services and Shelter Afrique bank contributes the money.
      Fo the normal construction loan as opposed to Joint Venture, you can contribute other equities and money injection. For this, Shelter Afrique bank will furnish you with its requirements for construction loans.
      The Joint Venture programme works best when someone only has the land but no cash to inject into the project.

  3. marion
    August 14, 2011 at 9:44 pm

    email me on marionnats@yahoo.com

    • frank
      August 15, 2011 at 5:35 am

      ok. Where is your land situated at? can you send me a google map of the location?

  4. marion
    August 14, 2011 at 9:45 pm

    my address is marionnats@yahoo.com

    • frank
      August 15, 2011 at 5:35 am

      ok

  5. marion
    August 16, 2011 at 10:19 am

    Dear Frank,thank you for your response.The land i currently have does not fit your creteria of 1.5-2 acres it is less than that and at mlolongo.which areas can one buy that can be viable to the projects?what about konza near the new city?i am currently out of the country.how can you assit/in acquiring land that suits/eligible the joint venture?

    http://www.nation.co.ke/Features/smartcompany/Kenya+eyes+techno+city+to+boost+growth+/-/1226/1219292/-/item/0/-/oeywie/-/index.html

  6. marion
    August 16, 2011 at 10:12 pm

    hi,seen your links for the 3000 units,how much does such a project cost and what/how big is the land?

    I am interested in buying 10-20 acres of land.are you able to view some land that is being sold at konza and tell me what you think?

    • frank
      August 17, 2011 at 5:40 am

      The cost runs into Billions of Shillings. The land is 1000 acres.
      I can view the land and tell you if it has potential. To save on transport costs, give me the google map coordinates of the land then i can look it up on Google maps.

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