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Real estate firm gets Sh5bn funding for affordable housing project
Finsco Africa CEO John Mwaura (left) with the president of Go Greenwood Bank, Ray Glover, after signing the MoU.
What you need to know:
- Go Greenwood Bank LCC has investment interests in housing and infrastructure
- In Thika, Kiambu County, Finsco Africa has a funding deal with National Bank.
Real estate company Finsco Africa has inked a Sh5 billion funding deal with Atlanta-based Go Greenwood Bank LCC for a long-term funding with key focus on affordable housing targeting lower and upper middle class.
Through a Memorandum of Understanding (MoU) signed between the two institutions at Kenya National Chamber of Commerce and Investment (KNCCI) offices on Tuesday, Finsco Africa chief executive officer John Mwaura disclosed that the global lender has committed to lend them Sh5 billion in tranches.
The funding, Mr Mwaura said, will be on residential projects in Nairobi, Kiambu, Murang’a, Machakos, Kisumu, Eldoret and Nakuru where some of their development projects are domiciled.
“We are glad to announce that we have signed an MoU with Go Greenwood Bank LCC as our global funding partner where they have committed to advance Sh5 billion for our affordable housing projects,” said Mr Mwaura.
“The Sh5 billion will be released in tranches and target projects that have delivery timelines of between five and seven years,’’ he added.
The financing deal was facilitated by the KNCCI which was part of a recent State visit by President William Ruto where Finsco Africa was also in attendance.
Go Greenwood Bank LCC has investment interests in housing and infrastructure, renewable energy, technology and agriculture.
Greenwood Bank LCC President Ray Glover said they want to duplicate their success story in the US to Africa by using Kenya as their gateway and reach more communities.
“What is fascinating about this particular opportunity is that there are issues with minority communities across the globe but I think using Kenya as a gateway to Africa, we will be able to do the exact same things that we are doing in America here in Africa through Kenya,’’ said Mr Glover.
Finsco Africa has previously funded its land and real estate investments through local lenders.
It recently launched a new project dubbed “Bliss water Park” in Naivasha, Nakuru County to support the tourism ecosystem in the region.
In Thika, Kiambu County, Finsco Africa has a funding deal with National Bank that involves both development financing and user finance with a repayment of up to ten years for a project dubbed ‘Thika Grove Chania’.
Mr Mwaura noted that land and housing has been one of the fastest growing sectors in Kenya over the past decade buoyed by a growing number of the middle class with the demand for land especially in satellite towns going up as demand for housing soaring.
He said the latter has fueled a boom in land transactions as people move away from Nairobi and settle in Metropolitan towns and its neighbouring areas where the land is relatively cheaper.
Kiambu and Machakos land prices emerged top of Nairobi’s satellite towns amid high speculation that saw the prices of the land go up citing good infrastructure and proximity to town and neighbouring counties.
Realtor HassConsult Quarter Four Land Price Index shows that an acre of land in the area increased by 9.4 percent in the last quarter of 2023 to Sh47.3 million.
The Index further reveals that all 18 Nairobi suburbs recorded higher buying prices, led by Langata, Ridgeways and Spring Valley, while in the satellite towns, Juja, Kitengela and Athi River were top performers during the quarter.
