Taaleri Plc trains eyes on East and South African real estate projects with $100 million investment
Finland based private equity fund and financial services group Taaleri has set its eyes on the growing East and South African real estate projects with an offer of $100 million.
Partnering with Cytonn Investments, a local private equity entity, the firm says it has already invested $40 million in the Kenyan property market.
It is also training its eyes on renewable energy sector.
“East Africa is the area where we have been active. There are tremendous opportunities in the region. We started with about $50 million with the first fund. We are going to raise new funds, double the first funds, by beginning of next year,” said Taaleri Plc chief executive Juhani Elomaa.
Mr Elomaa also announced the firm was considering venturing into regional green energy projects from early next year. The two firms have projects in Nairobi, Kiambu and Meru counties.
They invested $10 million in Amara Ridge, a high-end residential development in Karen, Nairobi. It sits on five acres and consists of 10 five-bedroom houses, each of which had a sale price of $950,000
Cytonn has also ventured into other areas including the fast-growing middle income town of Ruaka on the outskirts of Nairobi where it is building 400 units in a gated community at $2.5 million
The project is scheduled for completion within three years and targets middle- to lower-income earners looking for modern apartments.
Cytonn Investments is offering the one, two and three bedroom apartment options set on the 4.18-acre parcel of land in what it terms as a “lifestyle community”.
Taaleri’s head of Africa Antti-Jussi Ahveninen said the Kenyan market is being driven by healthy fundamentals.
“In Kenya you will not run out of ordinary families who will need a good quality home, we are here to provide those homes,” said Mr Ahveninen.
He termed the Kenyan market as having a lot of width, depth and very dynamic. He believes the Real Estate Investment Trust (Reits) regulations serve the market well and are well structured by the regulator, Capital Markets Authority.
“This allows investors like us to come into the market and fund development projects because how we see it is that even when our money leaves and we exit the ownership of the property, it will stay here and the proprietor of the new property will create jobs for Kenyans,” said Mr Ahveninen.