Latest update: 16 May 2024
- My client (an institution) is seeking to sell its 20 acre property located in Juja, off Juja Farm Road, in Kiambu County. The property is located in the proximity of Caren Gardens Estate and Juja South Estate.
- The property is flat, rectangular in shape with 600 metres of road frontage. The property is perfect for residential or commercial development.
I have built a financial model illustrating the investment opportunity for purchaser’s of the property.
- 240 3-bedroom and 3-bedroom + DSQ apartments built on 16 of the 20 acres
- 150 sqm for the 3-bedroom units @ 35,000 per sqm, sold @ 12 mn
- 175 sqm for the 3-bedroom + DSQ units @ 35,000 per sqm, sold @ 13.5 mn
- Project amenities include:
- Children’s playground areas
- Landscaped gardens
- A sports centre and gym
- Outdoor running tracks
- A commercial centre
- Backup power
- 70:30 debt to equity financing
- Home owners required to pay 25% deposits upon signing agreements for sale
- Project delivery period of 24 months
- Estimated project gross profit: KES 227 mn
- Estimated project IRR: 43.5%
- Land purchase price: KES 400 mn (20 acres)
Note: Any information provided here is shared for educational purposes and does not constitute investment advice.