The concept of new cities that Renaissance is planning in Ghana, Kenya (Tatu on 2500 acres for 70,000 people), Zambia (Roma park) and the Democratic Republic of Congo (Kiswishi on 6900 acres in Lubumbashi to break ground in 2012) are based on some harsh realities;
Both the cities will have high, medium, and low cost housing units and as the local mortgage continues to develop, the Renaissance team expect that most people should be able to afford homes. Ghana now has mid-market mortgages accessible over 10 years for about 80,000 Cedi’s (~$40,000 or Kshs 3.3 million).
– (Speculate)/purchase real estate in the direction that a City can grow towards.
– Use professionals and maintain a high standard of quality.
– Have an exit strategy.
Following in that model equity firm Actis and partners including Game are to develop Garden City which will include homes, an events arena, and the largest retail mall in East Africa. It has already attracted MassMart from South Africa and it will break ground in December 2012.
Other Mega project opportunities
Kisumu Floatel: A project is seeking investors to establish a luxury passenger vessel as a 5-star floating hotel on Lake Victoria that will accommodate 80 passengers.
Cautionary Tale: But sometimes mega projects can go wrong like this ghost city built by Chinese investors in Kilamba, Angola.
There are also other treatment for non residents, partnerships, estates of deceased landlords and Kenyans living in the diaspora, as well as tax incentives available for rental income on real estate investment trusts (REITs) and on low income housing projects (less than $20,000).
The release of the report was sponsored by The Mortgage Company, a mortgage brokerage firm who also released a mortgage rate sheet for consumer comparison and which showed I&M bank had the lowest mortgage rates of 18%, while Equity, CBA and Family Banks had the most expensive at 24%.
<b>TV Time</b>: Finally, there will be a new TV show coming to NTV in Kenya that will be devoted to real estate and will air on Sunday afternoons in a few weeks time.