Joint Venture in Kenya. 100% financing for Real Estate Projects. Highest Return on Investment .

Joint Venture in Kenya. 100% financing for Real Estate Projects. Highest Return on Investment .

Joint Venture for construction of buildings in Kenya is now a common occurrence . Many buildings are being financed this way. Notable buildings financed this way are the Suraya Housing project along Kiambu road, Everest park at Athi River and Project Snow Drop in Upper Hill.

Suraya Kiambu road.

Everest Park, Athi river.

Snow Drop, Upper Hill.


Why Joint Venture.

As the cliché saying goes, in Real Estate investment, there are 3 important points
1.Location.
2.Location
3.Location.

This means that not all potential Real Estate investors can get prime land. A good example of prime land is land fronting tarmac, land in Nairobi CBD ,Upper Hill, Westlands, Runda, Karen etc.

Land owners in such prime areas have 2 options to fund their Real Estate projects.

1.Sell part of the land to enable then raise 20 to 30% of the total project cost needed by the banks for them to release a loan of the remaining 70 to 80% of construction cost.

2. Look for a Joint Venture partner to raise the 20 to 30% needed by the banks as condition for releasing the 70 to 80% of construction cost.

In most cases, the Joint Venture scenario presents a win win situation since the development can be constructed with economies of scale and services such as parking can be easily availed in larger plot sized developments.


Joint Venture Return on Investment.

As a real estate investor, Joint Venture returns on average between 100% to 300% of the money put into the investment within 2 to 3 years. This is a very impressive return compared to the real estate average of 20 to 30%.

Example. 0.5 acre in Nairobi CBD outskirts Joint Venture.

The land owners contribution is kes 120m which is the value of the land.
The cost of construction is 400m.
For the land owner to obtain bank financing, he will require to have 20% of 400m in cash=80m.
This is a huge amount of cash so a JV win win situation is necessary.
The JV partner is required to inject KES 80m.
With this, he gets to be part owner of the land.

A Special Purpose Vehicle company is registered for this purpose whereby the land owner transfers the land into the company jointly owned by him and the JV partner.

Once the bank releases the loan to construct, houses are completed and sold off. After all expenses are deducted, a profit of kes 200m is realized.

The land owner gets the value of his land, kes 120m plus a share of the 200m, usually on a 50 50 split. He walks with kes 220m.

The JV partner after injecting kes 80m walks with the kes 80m plus kes 100m. This represents a 125% return on investment within 2 to 3 years which is quite impressive.

Conclusion.

For the land owner, a JV partnership represents the easiest way to unlock funding for development.
For the JV partner, the JV presents a situation for him to make over 100% return without having the need to buy land in a good location.

Francis Gichuhi Kamau, Architect.
0721410684


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43 responses to “Joint Venture in Kenya. 100% financing for Real Estate Projects. Highest Return on Investment .”

  1. Joseph kamau Avatar

    Helo? Am mr joseph ? Am looking for financiers for 4 jv projects in upper hill and in runda ? This ranges from 300m to 5billion do have financiers for the said projcts also looking for Equity funders ? For some other projects ?

    1. info@a4architect.com Avatar

      joseph, get in touch with me info@a4architect.com or 0721410684

  2. david Avatar
    david

    I have 3 acre land in kitale Town ,the land is in the middle of residential apartments.if you interested in the joint venture of rental housing company you can give me your feedback in my email.

  3. Jephita Otuke Avatar
    Jephita Otuke

    Hi my name is Jephita Otuke I looking for a joint venture with somebody to develope a 1/4 an acre in Ongata Rongai kindly advice.

  4. floice ohato Avatar
    floice ohato

    hi we have a residential house in umoja 2 is it possible to get it developed and not for sell but pay through rents paid. the returns made after completion

    1. Arch. Francis Gichuhi Kamau. Avatar

      not easy to find such a financier. email me details eg google map url, size of land etc.

      1. Gladys Avatar
        Gladys

        I intend to put up student hostels in an area where the Student population is high and accommondation is in high demand. How can I get financing, I estimate financing in the tune of Ksh.50 million.

  5. Aldo Moschion Avatar
    Aldo Moschion

    am in the process of acquiring two acre near Kiserian town, which would like to put up a gated community of 16 units on 1/8th of an acre for sale and interested in getting a financier for the project

  6. JOHN Avatar
    JOHN

    Hi. My name is JOHN.
    I have a one acre piece of land in a promising area fronting a railway station and in a busy town. I have the intention of building a shopping mall and already have the proposal in architectural drawings. The projected costs are estimated at Ksh350,000,000/= (Three hundred and fifty million Ksh) only. I need a partner for a JV. Kindly advice.

  7. Jacinta Wambui Karuku Avatar
    Jacinta Wambui Karuku

    i have a quarter acre plot in waithaka next to the chiefs camp, waithaka health centre , MCAs office and also very near to Waithaka Shopping Centre l would like some Financiers to help construct residential apartments

  8. David Ambayo Avatar
    David Ambayo

    my name is David,we have half an acre in wangige and would like to do a joint venture residential would you advice on financing

    1. Peter kibugi Avatar
      Peter kibugi

      Im located in Kabete and would be intrested in a J.V

  9. Eric Avatar
    Eric

    Great investment ,

  10. harrison mwangi Avatar
    harrison mwangi

    looking for a joint venture for 3 br apartments for sale in nakuru kiamunyi area. estimated cost sh 80-100m

  11. Gladys Avatar
    Gladys

    I intent to put up student hostels in a area where we have two universities and accommondation is in high demand. I also have house in Eastlands which I want to demolish and put up modern self- contained apartments.

  12. Thomas Abincha Avatar
    Thomas Abincha

    I am located on sotik-kisii highway on the first row on Tarmac and I would like to convert my
    newly constructed residence which is already fully furnished with all utilities including borehole
    water to a hospitality facility ! The facility has high end finishes , an adjacent incomplete hotel/conference facility ! Would like to discuss with an interested investor and site visit can be arranged !

  13. Abdi Avatar
    Abdi

    I am looking for 100acres land for joint venture in Karen

    1. Abdi Avatar
      Abdi

      Looking for 100acres for joint venture in karen

      1. waqamboqambo Avatar
        waqamboqambo

        connects investors with investmestment opportunities

      2. Francis Obare Avatar
        Francis Obare

        I have 2.5acres prime land in Narok town and wish to JV for decent apartments. We are on the Maasai Mara entry corridor and these will be the first ones of this kind.
        Kindly contact Francis on 0722337711

    2. vincent Avatar
      vincent

      15 acres avaiable

  14. Eric magondu Avatar
    Eric magondu

    Hi I have 140 acres in Nanyuki and am interested in a joint venture for estate development based on modern concepts of value addition. It’s freehold land with an absolute title. Please advise.

  15. alfred yang Avatar

    We wish to introduce our company the BUILDING MATERIALS CO. LTD. , based in Chengdu, China to all lovers of environment friendly modular homes.

    Our building materials are made from inexhaustible renewable resources at low production cost and are suitable for sustainable housing programs.

    Their load bearing capacity is 23 times that of cement, brick, concrete and other products in construction.

    The main features of our products are:

    1. “7 no” in modern building: no rebar, no cement, no brick, no girder, no column, no stone and no component.
    2.“7 proof” in high-technology housing: quakeproof, fireproof, waterproof, freeze-proof, crack prevention, mothproof and anti-aging.
    We are also interested in joint factory venture with prospective foreign investors.

    WE LOOK FORWARD TOWARDS SUGGESTIONS ON HOW TO PROMOTE OUR BUILDING MATERIALS AND POSSIBLE COOPERATION WITH COMPANIES OR CLIENTS.
    Yours
    Alfred Yang
    International Business Manager

  16. alfred yang Avatar

    We wish to introduce our company theBUILDING MATERIALS CO. LTD. , based in Chengdu, China to all lovers of environment friendly modular homes.

    Our building materials are made from inexhaustible renewable resources at low production cost and are suitable for sustainable housing programs.

    Their load bearing capacity is 23 times that of cement, brick, concrete and other products in construction.

    The main features of our products are:

    1. “7 no” in modern building: no rebar, no cement, no brick, no girder, no column, no stone and no component.
    2.“7 proof” in high-technology housing: quakeproof, fireproof, waterproof, freeze-proof, crack prevention, mothproof and anti-aging.
    We are also interested in joint factory venture with prospective foreign investors.

    WE LOOK FORWARD TOWARDS SUGGESTIONS ON HOW TO PROMOTE OUR BUILDING MATERIALS AND POSSIBLE COOPERATION WITH COMPANIES OR CLIENTS.

    1. Jen Avatar
      Jen

      Hey alfred, Do you have a website?

  17. Linus Maina Avatar
    Linus Maina

    Have a 1/4 acre plot touching tarmac along Thika super highway in Ruiru.
    Looking for more information in regards to JV.
    Rgds.

  18. FRANCIS MASIKA Avatar

    FRANCIS MASIKA
    HAVE 50FT BY 100FT PLOT AT SYOKIMAU WHERE THERE IS THE SHOPPING CENTER WHERE COMMERCIAL BUILDINGS CAN BE DONE AT THE GROUND AND THE FIRST FLOOR SECOND AND THIRD ONE CAN DO RESIDENTIAL HOUSE FOR SELL OR RENTING.
    IAM LOOKING FOR PARTNER TO DO THE PROJECT

  19. Nelson Ranginya Avatar
    Nelson Ranginya

    We have (40 by 70)ft plot next to Mombasa SGR Station suitable for constructing a high rise hotel for the ever busy train passengers.We are looking for a joint venture to implement this project.

  20. Salim Avatar
    Salim

    We have half an acre of plot new jacaranda apartment next to kamiti prison we have ready approved plans for apartments for sale the plot is 71M off the main road can I get a developer

  21. kevin Avatar
    kevin

    I have an acre in upper hill owner willing for joint venture email

  22. anne nick Avatar
    anne nick

    Hey i have a plot for residential in ruiru town and looking for joint venture to develop apartments.
    Many thanks

  23. anne nick Avatar
    anne nick

    Thank you

  24. philip Kabuba Avatar
    philip Kabuba

    This JV looks pretty good. I would love to know the length of time for the joint especially if the development is majored for rent and not sale
    Please advice
    Philip K.

  25. Mehboob Mughal Avatar
    Mehboob Mughal

    I have 75 acres of prime agricultural land in Makueni County , Makindu Division , Kiboko Location approx..4.5 km from the main Mombasa Highway. I am interested
    a) in a joint venture to develop a gated farming community of 1/8, 1/4, 1/2 acre plots or even an acre.
    b) Joint Venture with an existing farming company
    c) Partner who can invest in value addition for mixed development of gated farms & domestic cheap housing

    1. Arch. Francis Gichuhi Kamau. Avatar

      ok, email me info@a4architect.com with more details eg value of land, google maps pin etc

  26. susan Gitau Avatar
    susan Gitau

    Hello kindly get in touch with me at saisagitau@gmail.com

  27. Solomon Kamau Ngugi Avatar

    Quarter of an acre at Uthiru,looking for Jv for flats.

  28. nelson ndwiga Avatar

    Would love to get into the JV opportunity

  29. Francis Obare Avatar
    Francis Obare

    I have 2.5acres prime land in Narok town and wish to JV for decent apartments. We are on the Maasai Mara entry corridor and these will be the first ones of this kind.
    Kindly contact Francis on 0722337711

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