Centum Real Estate, a fully owned subsidiary of Centum Investment Company Plc, plans to broaden its footprint in the realm of homeownership through the creation of a sustainable housing initiative.
The initiative, dubbed Mzizi, will provide housing units with prices beginning at a modest Sh1.9 million.
Diverse Unit Options at Two Rivers Complex
The units within the Mzizi project will include studio apartments priced at Sh1.9 million and three-bedroom units costing Sh10 million.
This housing development will take place at the Two Rivers complex.
Affordable Housing Trend: Lowering Prices for the Middle Class
The influx of investors in the affordable housing sector has led to a steady decline in unit prices.
This shift brings these properties within reach for the middle class, a demographic traditionally excluded from the housing market.
Edermann Property Limited competes by offering three-bedroom apartments at a competitive price of Sh2.95 million each.
Centum Re’s Ambitious 2,000-Unit Project
Centum Re’s housing project, funded through a Sh3 billion ($20 million) loan from the International Finance Corporation (IFC), aims to construct a total of 2,000 units.
This strategic move will allow Centum Re to enhance its market share in the country’s homeownership sector.
Long-Term Vision: Financing and Construction Details
The IFC loan, which is repayable within seven years, enables Centum Re to adopt a long-term perspective in developing housing communities of scale in the region.
Moreover, we anticipate completing the construction of 2,000 homes in phases.
The first phase, consisting of 300 homes, is already well advanced.
Furthermore, the company is funding the project through the Sh3 billion bond recently repaid for housing projects.
Market Dynamics and Centum Re’s Profit Reversal
Official data highlights that only 21.3 percent of the population in Kenyan urban areas own their homes, leaving a substantial market for Centum Re and its competitors.
Centum Re reported a Sh518.8 million profit for the half-year ended September, overturning a Sh267.9 million loss from the previous year.
Mixed-Use Developments and Future Outlook
Centum Re incorporates a blend of residential units and commercial buildings, including offices, in its developments.
The company aims to finish the initial housing project phase by July, showing commitment to Kenyan housing needs.
