Housing Finance has announced plans to build a Sh 800 million housing project in Nairobi’s Komarock estate.
HF managing director Frank Ireri said the project consisting of 162 residential units and a commercial centre sitting on a 13-acre piece of land will be accomplished jointly with the National Housing Corporation (NHC).
“We will provide construction financing for this project whose ground-breaking is scheduled within the second quarter of 2012,” said Mr Ireri.
The project is targeting the middle-income market segment, with a three-bedroom house selling for Sh6.8 million.
The announcement comes seven months after HF revived its property development subsidiary, Kenya Building Society (KBS), after remaining dormant for close to two decades.
According to Mr Ireri, the firm’s decision to revive KBS is informed by the super profits that property developers are currently making thanks to the big shortfall in housing supply, estimated at two million units.
“We will use the construction subsidiary to build our own houses for sale on a large scale,” said Mr Ireri.
Earlier last year, HF unveiled a property development package targeting land owners where it sub-contracts professionals to build homes while the buyer meets the cost in a mortage-type arrangement.
HF is betting on KBS to provide housing for the mass market, which has been largely ignored by private developers although it presents a profit-making opportunity.
NHC has also announced its entry into the down-market housing segment with Sh5 million homes. The agency has invited tenders to acquire a bloc of 5-15 acres of land, within a 20-km radius of the city centre, in Kiambu (along Thika Road) or in Embakasi.