Kenya Railways seeking investors for real estate projects

An artists impression of Nairobi Railway City.
An artists impression of Nairobi Railway City. PHOTO/COURTESY
The Kenya Railways Corporation has invited investors interested in partnering with it in various real estate projects in major cities across the country.

In an ‘Expression of Interest’ advert published in the local dailies, the state-corporation said it was seeking partners to help it build commercial buildings, shopping malls, hotels, residential accommodation, light industries, recreational and conference facilities in Nairobi, Mombasa and Kisumu.

The projects, dubbed Railway Cities, will be build on 385 acres of prime land around major railway stations in the three cities. The corporation has designated for the projects 200 acres in Nairobi, 110 acres in Mombasa and 75 acres in Kisumu.

“There is demand for the proposed types of property – guaranteed rental revenue growth and capital gains on real estate, and 12 per cent growth on demand for commercial offices and light industrial facilities,” read the advertisement.

In the proposed investment structure, the corporation will enter into joint ventures in which it will chip in 15 per cent in infrastructure while the partners will contribute 85 per cent as investors’ capital to start out development.

The Kenya Railways now joins a growing list of institutions making a foray into the lucrative real estate market.

Others on the list include the Centum Investment, NSSF, Kenol Kobil, British American Insurance, Pan Africa Insurance and Renaissance Capital of Russia.

Centum Investment announced recently that it will build a Sh60 billion real estate development on its 100 acres of prime land along Limuru Road, near Gigiri.

The NSSF has also declared its intention to build high-end homes on its prime land in Milimani, along Nairobi’s State House Road.

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