Mega real estate mixed-use project Tatu City announced on Thursday it had set aside money for initial infrastructure after sealing deals with 13 companies in the Sh350 billion planned development in Ruiru.
This, even as its parent investor, private equity firm Rendeavour, said it was scouting for more land in Africa.
Rendeavour country head Nick Langford said the Sh2.2 billion will bankroll infrastructural upgrade for roads as well as water, sewer and power connections, which are currently ongoing.
A further Sh17.1 billion is set aside for additional infrastructural works over the next five years.
Mr Langford told the Daily Nation during a tour on Thursday that the private equity firm is eyeing additional African countries with plans to set up mega cities modelled along the line of Tatu.
“We are looking to expand our portfolio and so we are looking for additional land throughout Africa. We are for instance targeting Côte d’Ivoire and Ethiopia,” said Mr Langford.
Rendeavour says it has a land bank of over 30,000-acre projects in Ghana, Nigeria, Zambia, Democratic Republic of Congo and Kenya where it is seeking to set up real estate mixed-use initiatives.
LAND PURCHASE DEALS
Mr Langford said a total of 13 firms have so far sealed land purchase deals in the planned city’s Industrial Park, which includes 420 acres of serviced industrial land. “We are hoping to be sold out by the end of the year,” he said.
Some of the companies which have bought land at Tatu include Dormans Ltd, Kim Fay East Africa Ltd, Maxam, Bidco, and Unilever.
Consumer goods giant Unilever East Africa has acquired 70 acres of industrial space where it plans to set up its manufacturing business.
Bidco Oil Refineries has purchased 78 acres from Tatu City where it plans to set up shop.
Tissue paper maker Kim Fay has also announced plans to move its business from Nairobi’s Industrial Area to a Sh2.5 billion factory and corporate headquarters in Tatu City.
Maxam, the firm that distributes Heineken beer is also setting up shop at the industrial park.
Coffee exporter and roaster, Dormans Coffee Group, also plans to set up its new global headquarters at the Tatu Industrial Park.