REAL ESTATE

Brownstone baits investors with housing project

The firm is currently putting up a Sh600 million 348-unit housing project at Muthiga

In Summary
  • It will contain 300 studios and one-bedroom and 18 two-bedroom units.
  • The country's production of housing units is currently at less than 50,000 units annually well below the target number.

Local real estate firms are riding on the government’s afforded housing plan to target long-term investors looking to cash on the huge deficit.

Government data shows that the country's production of housing units is currently at less than 50,000 units annually well below the target number.

This culminates in a housing deficit of over two million units with nearly 61 per cent of urban households living in slums.

Brownstone Capital is one such firm and is currently putting up a Sh600 million 348-unit housing project at Muthiga along Waiyaki Way targeting long-term investors.

"We are giving investors a platform to diversify their investment portfolios especially those investing in the stock market and government bonds, firm's sales associate Peter Ng'ang'a Kibugi said.

The company provides post-construction management of their housing projects which include rent collection.

The project-Amaziah DMW- has already taken shape and will contain 300 studios and one-bedroom and 18 two-bedroom units. It is a mixed-use affordable housing targeting investors seeking to earn attractive yields on their investment as well as capital gains

The company's projects, Kibugi says, are tailored to optimise rental wields to the investors and also strive to create beautiful, modular designs In master-planned environments that ensure high and long-term occupancy.

Brownstone Capital which was started four years ago has already introduced Its sixth project, Amaziah DMW in Muthiga along Walyaki Way in Nairobi which it says will go a long way in addressing the city's increasing house demands.

So far, it has developed more than 500 units with investor returns of more than 25 per cent.

"Real estate income allows our investors to build more Investment over time by reinvesting their real income in bonds, money makes and buying more developments," says the developer.

Among the benefits associated with such investments include attractive monthly passive cash flow, capital gains potential, and escalation in rent over time among other tax benefits.

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