IFC invests Sh2.8 billion in Nairobi estate

An artist’s impression of parts of Garden City, Thika Superhighway.

By WAHINYA HENRY: The People in Property Weekly January 23, 2014 

 

IFC, a member of the World Bank Group, and CDC Group last week announced an investment of $32 million (Sh2.8 billion) in a new mixed-use real estate development along the Thika superhighway in Nairobi. The Garden City project is sponsored by Actis, and expected to create more than 650 jobs directly during the construction phase and over 800 more once completed.
Garden City will be built in two phases, comprising a 50,000 square meter mall, 20,000 square metres of office space, 421 residential units and a three acre park. The project will meet retail needs in one of the fastest growing areas of Nairobi. An estimated 1.5 million people live within the immediate, primarily residential, catchment area.

Mr Koome Gikunda, Investment Principal with Actis said Garden City will become a genuine mixed-use community and an enduring landmark that the residents of Nairobi and the region can be proud of. “CDC and IFC are bringing their experience and expertise in backing this vision.
The scale and ambition of Garden City builds on Actis’s reputation as sub-Saharan Africa’s most experienced private equity real estate investor,” he said. Oumar Seydi, IFC Director for Eastern and Southern Africa, said Garden City opens new business opportunities and creates jobs by providing a modern real estate platform for the supply of goods and services through local businesses.
“Garden City is actively working with IFC and CDC to encourage entrepreneurship and serve consumers through an initiative that aims to attract local artisans who will have access to affordable temporary market spaces.” According to CDC Regional Director, Dolika Banda, the project will provide vital jobs in Nairobi, and benefit the local economy through its supply chain, infrastructure and new opportunities.
Few investors have an appetite for greenfield real estate projects in sub-Saharan Africa, so this investment sends a strong signal of our commitment to Kenya’s development and our confidence in its economic potential,” he added.
Phase one now underway involves the construction of 33,000 square metres of retail space and 76 residential units. Tenants include Nakumatt, and Tile & Carpet Centre and Game, a South African chain store.