Greenpark Estate developers, Superior Homes Kenya, have announced a Sh30 billion investment plan to put up a new 3,000-unit housing project in Athi River.
This comes ahead of their plan to list on the Nairobi Securities Exchange, a move they believe will provide them with access to a source of institutional finance that they intend to explore soon. The gated community development targeting the middle class will be on 337-acres of land that Superior Homes is set to acquire from East African Portland Cement Company.
This follows a ruling by the Court of Appeal in favour of the developer that ordered the cement maker to sell the land to the developer in line with a sale agreement that had been signed in 2005.
“We have strong cash flows from the ongoing sales of houses at Greenpark. We shall divert all surpluses into the new venture, we will take loans for construction finance and we will re-invest all profits from the sale of houses on the land,” Superior Homes managing director Ian Henderson told the Star on how the firm plans to raise funds for the project.
He noted that the firm has almost exhausted 163 acres at Greenpark Estate.
Superior Homes purchased the land on which it has been developing Greenpark Estate from East African Portland Cement in 2005 with an option to buy the adjacent plot.
However, disputes emerged after the cement processor failed to complete the sale, prompting Superior Homes to seek legal redress.
The High Court ruled in the favour of the developer but EAPCC held their position and took the matter to the Court of Appeal which has upheld the decision.
“We want to create a development with all the infrastructure and amenities required for a truly cosmopolitan neighbourhood within easy travelling distance to Nairobi,” he affirmed.