Firm to sink Sh40bn in real estate projects
A residential building in Kileleshwa, Nairobi on July 2, 2014. Real estate firm Acorn Group plans to inject Sh40 billion into high-end properties within the Nairobi metropolitan area. PHOTO | SALATON NJAU | FILE
What you need to know:
- The firm expects to earn between 10 and 12 per cent returns annually on most of its projects.
- Acorn Group was established 14 years ago to engage in development of commercial and residential properties across East Africa.
Real estate firm Acorn Group plans to inject Sh40 billion in property projects to tap into the growing demand for high quality office and residential facilities across the country.
The firm on Monday laid out plans to put up high-end properties like shopping malls, office blocks, business hotels and residential houses within the Nairobi metropolitan area to attract investors and buyers over the next two years.
FLAGSHIP PROJECT
It expects to earn between 10 and 12 per cent returns annually on most of its projects.
Company chief executive Edward Kirathe said the amount will be sourced through equity and bank loans, with the ground-breaking of the first project expected in October this year. Its flagship project is the Arboretum Square with others spread in Mlolongo, Kitengela, Lukenya and Jogoo Road in Nairobi.
The firm was established 14 years ago to engage in development of commercial and residential properties across East Africa.
Some of the projects Acorn has undertaken include the development of Coca Cola East and Central Africa head office in Nairobi, the Deloitte East Africa headquarters, Equity Centre, the Britam tower which is under construction in Nairobi and the Nakawa Business Park in Kampala.
“The projects are in response to demand for property — especially retail and residential — by the middle and lower segment driven by sound economic, demographic and social trends,” Mr Kirathe said.
