PROPERTY BRIEFS: Crown Paints to open new plant in Kisumu next year

Crown Paints to open new plant in Kisumu next year

Crown Paints will open a Sh400 million plant in Kisumu in January to cut costs and capture a larger share of the growing real estate market in the western region.

The Nairobi Securities Exchange-listed company will now supply all the counties in the area from the new plant that will be fully automated with a capacity of 1.3 million litres per month. Currently, Crown produces 2.3 million litres of paint per month.

Chief executive Rakesh Rao said that the plant will help them serve the area better and make deliveries faster. The areas, especially Kisumu and Eldoret in Uasin Gishu, have seen huge growth in real estate development providing a good future market for the paints maker. Developers have been flocking to the lakeside town with several companies announcing plans for major projects.

Stanlib Reit undersubscribed as investors put money in T-bills

Kenya’s first Income-Real Estate Investment Trust (Reit), issued by Stanlib Investments, was undersubscribed by 71.2 per cent as it suffered stiff competition from high-yielding government securities.

The Reit raised Sh3.6 billion against a target of Sh12.5 billion, with analysts also blaming the market’s poor grasp of the concept for the performance.

At the time of the sale, the 182-day Treasury bill was yielding 22.29 per cent interest rate. Promoters of the I-Reit, however termed it a success, having exceeded the minimum Sh2.6 billion target they had set for listing.

MINIMUM ANNUAL RETURN

The Reit went on sale on October 22, with Stanlib Investments indicating the offer would have a minimum annual return of 14 per cent. Stanlib said it would use the funds to invest in seed properties.

Among the properties that the Reit is targeting is the Greenspan Mall. The Competition Authority of Kenya has already approved the transaction.

Housing company to build Sh2.5 billion estate in Mlolongo: Diamond Property Merchants is putting up a Sh2.5 billion housing project comprising of bedsitters and two-bedroom units in Mlolongo.

A two-bedroom house will go for Sh4.5 million and a bed-sitter for Sh1.8 million. There will be 280 two-bedroom houses and 200 bedsitters. The project on a 10-acre piece of land will commence early next year and will take two years to complete.

The firm is banking on the proximity of the development to the Jomo Kenyatta International Airport in Nairobi to attract potential homeowners to the area. The project is 80 per cent financed by five banks, including Family Bank, with the balance coming from internal funds.

Demand for mabati declines as builders seek modern roofing options

The use of galvanised sheets continues to fall as more developers and home builders opt for alternative roofing products.

Kenya National Bureau of Statistics (KNBS) data shows production of iron and steel sheets dropped to 142,205 tonnes between January and July from 161,596 tonnes similar period last year — marking the lowest level since 2010 when output stood at 118,616 tonnes. The drop comes even as construction continues to record impressive growth.

Players in the sector say the use of shingles and tiles is rising despite being costlier than galvanised sheets with investors drawn to their aesthetic appeal.

The cost of a galvanised sheet ranges between Sh304 per metre and Sh488 for a sheet with a thickness of 30 gauge. Shingles cost Sh800 a panel as priced by Tactile Roofing Solutions. A panel measures 0.45 metres by 1.3 metres.