Investment on Leased land.

Kiserian project.

 

The project is located at the below location.

https://www.google.co.ke/maps/myplaces?hl=en&ll=-1.42749,36.691455&spn=0.003035,0.005284&ctz=-180&t=h&z=18

 

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There will be 40 rental rooms to be let out for commercial activities within a 1/4 acre land fronting tarmac at Kiserian town.

Here is the lease document.

scan0008-1

 

Investment can be in multiples of number of rooms. Each room costs kes 80,000. Investors can invest a minimum of 1 room and a maximum of 40 rooms. Returns are as below spreadsheet.

Floor plan layout.
new site layout

floor plan
Bank financing options.

For those who intend to borrow, assuming 12% annual bank interest rate, 1 room will attract a monthly revenue of kes 3100-kes 750=KES 2,350.

One room investment is kes 80,000. Borrowing kes 80,000 will attract kes 2,342 monthly repayment for 3.5 years as per below coop bank calculator.
http://www.co-opbank.co.ke/index.php/loan-calculator

This means that after 3.5 years, the loan will be fully re payed from the room revenue . The rest of the 1.5 years remaining in the lease can be enjoyed as full profit. If the lease is further renewed for 5 more years, the profit enjoyed will be monthly rental revenue for 6.5 years. If the lease is not renewed, the building materials can be transported to another leased site for the profits to remain the same.

 

Contact info@a4architect.com or 0721410684 for more info.

 

RENT PER ROOM. Monthly 3100
RENT FOR 40 ROOMS Monthly          124,000.00
ANNUAL RENT       1,488,000.00
RENT MINUS LEASE Payment       1,128,000.00
LEASE Payment PER YR          360,000.00
CONSTRUCTION COST 40 ROOMS       3,200,000.00
RETURN ON INVESTMENT. YEARS 2.8369
PROFIT. YEARS 2.1631
PROFIT FOR 2.1 YEARS       3,218,723.40
Profit per room            28,200.00
Investment per room            80,000.00

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18 Replies to “Investment on Leased land.”

  1. Kindly book me in on this project for at least 5 rooms. How will ownership under leasing arrangement be managed and secondly how will revenue be shared? thanks.

    1. @kuria, ownership will be through limited liability company shareholding and revenue will be shared on room ownership basis. current lease is held by Mr Wachira who will work out modalities to transfer the lease to an LLC.

  2. I am just curious about the prefab type of houses. what are the walls made of bricks or what? How long would it take to finalize on the project once you have the necessary quorum? The grace period should be factored in where you are projecting the return on investment.

  3. Hi Francis,

    In your analysis on return on investment or profit, have you factored in the following…

    1. Water and Electricity Expenses 2. Income Tax on Rental income 3. Management Agent Fees?

    thanks.

  4. What is the status of the project? Do you still have any rooms available for lease and any progress pictures availabale?

    I’m interested in 2 rooms

    1. your ideas are good and down to earth. keep informing us.

      i got a land in limuru touching limuru kwambira road and overlooking the nakuru highway just abour 1km from limuru towm 4 acres in total. desires a joint venture investor. would like to discuss how we can craft a project. may i see you in your offices tomorrow at 11.30pz

  5. I visited the site over the weekend, it’s next to the main road and it’s 50 metres away before you reach kiseria town (CBD) from Rongai. I would like to encourage potential investors to visit the same and share their thoughts. I would like to offer a commitment to invest in at least 10 more rooms.

  6. please forward me i information on this project.also i need information on cost to build a 4/5 bedroom mansion as i saw one in Ngongo.the final figure to a complete 4/5 bedroom

  7. I would like to know more about investing in the leased land , what are the requirement for Kenyan investors abroad?

    are the rooms still available?

    Thank you

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