The Kenya Commercial Bank is set to build over 5,786 affordable residential homes and commercial offices worth Sh. 6.035 billion. The bank has kicked off the search for strategic partners for the project.
The multi-billion project will be constructed on the lender’s land in Juja near the Thika Superhighway. According to a report that appeared in a local daily, KCB will enter into a joint venture (JV) with a real estate developer and create a special purpose vehicle (SPV) to finance and develop its 153.17 acres land.
The bank’s contribution to the project would be land estimated to be worth Sh. 2.3 billion based on the cost of acre in Juja at Sh. 14.9 million. The remaining amount will be provided by the JV Partner who will also meet other construction related costs. The JV partner will have a majority 61 percent stake in the project while KCB will hold a minority 38 percent shareholding.
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“The bank intends to dispose the properties by either outright sale or undertake redevelopment of the land parcels into a mixed-use project comprising of about or over 5,786 units of various assets types such as residential, commercial and retail, student accommodation, industrial and light logistics for outright sale to the public. The Bank’s contribution will be land while the JV Partner shall provide all development/sale capital,” the bank said in an internal document.