Project News

Property Manager Acquires 200 Homes at Garden City

IHS has acquired the units at 237 Garden City on Thika Road, Nairobi.

Updated on

October 25, 2023

Mi Vida Homes at Garden City. (Photo: Courtesy)

South African property investor International Housing Solutions (IHS) has acquired 200 units in Mi Vida Homes’ affordable housing project in Nairobi, providing a substantial financial boost to the real estate developer.

IHS, which specialises in green affordable housing investments throughout Sub-Saharan Africa, has acquired the units at 237 Garden City on Thika Road through its local subsidiary, IHS Kenya, aiming to capitalize on the local housing market.

As per the deal, IHS will acquire 100 one-bedroom apartments, each priced at Sh4.2 million, and 100 two-bedroom apartments, each selling for Sh6.4 million.

This adds up to Sh1.06 billion, but it is unlikely that the investor – who will hold the units for rental income – bought the units at the quoted prices.

Mi Vida’s 237 Garden City is in its groundbreaking stage, and the block purchase represents 30% of the total 600 apartments on offer.

IHS Kenya managing director Peter Mayavi said that the deal will guarantee Mi Vida Homes a ready market for units in its affordable housing project.

This guarantee is expected to enhance the confidence of developers and other stakeholders in ensuring the timely, eco-friendly, and quality delivery of houses.

“IHS’s agreement with Mi Vida Homes is timely because Kenya has a pressing need for housing that is not only affordable but offers the quality that ensures users get a dignified living,” Mr Mayavi said.

“A key way of ensuring this goal is removing the market risk for developer partners because this will now catalyze the development of large-scale projects.”

In agreement, Mi Vida Homes chief executive Samuel Kariuki said the purchase deal, at a fixed price, has enabled the developer to mitigate market risk, which is a challenge to scaling for the wider housing market.

“Through this partnership with IHS, Mi Vida Homes has a guaranteed market for the apartments we are building. Our main goal is to guarantee timely delivery and sustainability at every stage of the project, including planning, building, and project management,” Mr Kariuki said.

He added that the block sale at 237 Garden City demonstrates the opportunity to attract global capital to play a dual role in the demand and supply of affordable housing in Kenya, which is grappling with a shortage of about two million units.

With backing from Actis and Shapoorji Pallonji of India, Mi Vida Homes boasts four projects, including Mi Vida at Garden City, which was completed last year.

Its other projects include Amaiya at Garden City, 237 Garden City, and KEZA in Riruta, which are currently at the groundbreaking stage.