Southern Sunshine Hotel, Nairobi.Questions and Answers.

1. What is the status of the Hotel project? i.e. is it in the planning, have you began construction, or is it in the completion state?

As of 24th February 2014, the land conveyancing transaction is halfway through, awaiting the next Land Board meeting scheduled for 6th of March 2014 at Kikuyu town for the extraction of the rremoval of the caution by the Ministry of roads then 21 days later,the final stage of conveyancing whereby the land will change 100% ownership to A4architect investments, LTD from the current owner.
The title deed will be posted at our forum here for people to see and make searches to verify this at the Kiambu Ministry of Lands offices.


and the Southern Sunshine page here


2. When do you envisage it will begin operations?

Construction will begin from mid March 2014 and will phase 1 will comprise of the ground floor office,restaurant and bar plus the 1st floor 11 rooms. These should be complete by September to December 2014 whereby the 1st phase will be open for business as the 2nd floor phase 2 construction continues.
The Southern bypass is scheduled to be officialy complete by July 2015.


3. You had given discounting rate for the people who join earlier. If I join today what batch will I be in and how much will I pay? Have you attained the 33 members to had envisaged?

Here is a link to the sale price.

As at 24th February 2013, the membership stands at 3 people/rooms.


The sale price is KES 1, 740,000.

The sale price is discounted as below.

The 1st batch of 5 buyers are discounted at kes 540,000, to purchase at kes 1,200,000.

The 2nd batch of 5 buyers are discounted at kes 360,000, to purchase at kes 1,380,000.

The 3rd batch of 5 buyers are discounted at kes 180,000, to purchase at kes 1,560,000.

The 4th batch of 5 buyers will purchase at kes 1,740,000.

The 5th batch of 5 buyers will purchase at kes 1,920,000.

The 6th batch of 5 buyers will purchase at kes 2,100,000.

The final batch of buyers will purchase at kes 2,280,000.

4. When will be the first meeting of the 33 shareholders be?

We had the initial meeting at our offices along Karen road here

The meeting was in January 2014. We intend to have the next meeting at the site once construction begins. The meeting will be attended by the current shareholders and other members who will want to join in. We envisage getting the full 33 membership by January 2015. The project will continue with the membership resent as new members join in. Once the 33 membership is reached, we intend to move to a similar hotel project where current members or new members can come together and partake into a similar hotel project, in areas such as Nakuru, Lamu, Diani,Turkana,Nyahururu or where feasibility studies will show a strong demand for boutique hotel project.

5. Will you be a shareholder?

Yes. All the hotel projects will have myself as a shareholder due to the high return on investments percieved.


Similar hotel projects such as Ngong Bounty hotel are charging more than what we have worked out in the return on investment report above, meaning that once operations start, returns should be more than what we are currently planning on since the hotel is on an international bypass road.


6. How strict is the “own a room” in it’s sense? Does one’s
share own an exact particular room say eg room no 3.

A room owner owns the rooms in a similar manner that an apartment owner in the thousands of apartments for sale around Nairobi does. The only difference is that i this case, the room owner agrees to let out thir room to a hotel management organisations so as to get more / higher rental revenues.

A shareholder gets to own a particular room explicitly denoted by a number e.g 1 to 33. This particular room is described in detail in the contract where the owner has complete ownership of the room but has allowed the room to be used as a hotel and the revenue generated by the hotel to be relayed to him/her. The owner takes part in the decisions pertaining the running of the hotel. As a fall back resort of the last option,in the worst case scenario, the rooms can all return to their previous owners who can then decide on how best to use their individual rooms, either by living in them or letting them out as bedsitters. This however, has very minimal returns compared to letting the rooms out as a single hotel.

7. Does this translate also to how the share earns revenue?

The hotel management will collect all rent from all rooms, remove running costs and equally distribute earnings to all room owners. This is exactly what happens in other similar hotels in South Africa.


8.Expounding on the question: If room no 3 was occupied 15 days in a
month will the owner get the income from 15 days and lets’s say room
no 4 was occupied for 24 days that month will the owner get income
from the 24 days?
Or will the income be pooled together and income
paid as per the share ie equally.

The income from all rooms will be pooled together then distributed evenly. All the 33 rooms are of the same size so the rates will all be the same.

9. What is the prices currently?

Current price as at 24th February 2014 is kes 1,200,000 per room. The price increases by 15% after every 5 buyers.


10. Mode of payment. Is the payment a 100% cash upfront or can one pay
in installments? For instance, if one can secure the full sum in May
can he book a share now at current price and complete payment in May?

Payment is 100% cash/cheque upfront or 2 instalments to PRISM DESIGNS AFRICA.

11. When buying a room does it automatically translate to owning a
share in the owning company? Will there be other shareholders apart
from the 33 room owners?
And in the case of 4 people co-owning a room
will they each have a share or will they have to own one share under a
common ownership? If Southern Sunrise is currently owned by a company
can one have access to the Memorandum and Articles of Association?

Buying a room automatically translates to owning 1 share of the Limited Liability Company.
If the hotel rooms increase to a number higher than 33, by building more floors, there is a possibility of the shareholders increasing. The number of shareholders will be exactly the number of rooms.

If 2 or more people come together to own a rooms, they will have to nomiate one of them to be the registered owner of the room. Our advocate,James Joroge,contacts as below, will advise on this further.


12. Is Southern Sunshine an off-plan project or is it a going concern?

The Southern Sunshine hotel is a going concern. Once the membership is achieved, it gets a life of its own and decisions are made as per Kenya Laws/A.G/Registrar of companies rules.

13. Viewing. Can one arrange for viewing of the hotel/plot and get a
copy of the land documents to carry out a search?

Yes. You can visit the site any time. Here is the google map for the location. The land conveyancing transaction will be complete by 6th March 2014, whereby a search at the Liambu Lands Registry will show that A4architect investments LTD owns the land.

A further search at the AG’S office/Registrar of companies will be able to show who are the shareholders in the A4architect investments LTD.
Incorpration Cert- A for Architect Investments Ltd

Click here to view the location on Google maps.

View Southern Sunshine Hotel in a larger map

Francis Gichuhi Kamau, Architect.


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