Hi everyone:
I'm looking for a joint venture partner/financier/developer/contractor who has the capacity to finance a residential construction project to the tune of Ksh. 320-400 Million (USD $4-5 Million).
The project, which would comply with City Council by laws, is the construction of 40-48 three bedroom high end apartments (190sq metres each) in Lavington, Nairobi. They would be similar to these:
http://www.residential.propertyleo.com/property-details.php?ref=MC/1616&record=4&page=1My contribution is the land (1.25 acres measuring 110metres by 55meteres) which I already have and can viewed.
The project timeline is: 1-2 years construction and 2 years selling post completion.
Partners will exit by selling or renting the units (expected selling price is Ksh. 15-17 Million per unit. Rent is expected to be Ksh. 75,000/month/apartment unfurnished or Ksh. 90,000+/month/apartment furnished.
There are basically three models I'm looking at:
* Option 1: Financier provides the downpayment (about Ksh. 100M-Ksh. 135M) for us to jointly secure a mortgage from Housing Finance or Savings and Loan. HF requires 30% downpayment and finances 70% of total project cost. S&L requires 20% downpayment and finances only 80% of construction cost (excluding paying the professionals - architect, quantity surveyor, etc). Here the expected return to the Financier is 80%+ after paying off the bank loan.
* Option 2: Financier provides the entire financing (Ksh. 320-400 M) for the entire construction. Here the expected return to the Financier is more than 50%.
* Option 3: Outright sale of the land to the financier who then undertakes the project. Return is more than 25%.
Each partner shall receive their share of the profits based on a ratio that is mutually agreed upon.
Search Criteria:
1. Financier should have a track record of having made similar investments. The track record will be reviewed.
2. Financier should be well financed. Evidence will be needed.
For those who are interested (including consortiums), please contact me (brokers who can deliver are welcome too):
Peter
petermutooni@yahoo.comMobile: 0725 742 555