Buyers of properties developed by Centum Real Estate have booked double-digit gains on their investment this year, according to the company which is a subsidiary of Centum Investment Company Plc.
Investors in the real estate firm’s Riverbank residences enjoyed a capital gain of 20 percent as the value of their property shot up to Sh18 million per unit from about Sh16 million last year while those who invested in Loft residences enjoyed a 22.2 percent appreciation in value to Sh55 million from Sh45 million over the same period.
Buyers of the Two Rivers residences booked rental yields of between 11 percent and 12 percent this year, before factoring in capital gains on their completed units.
Centum Real Estate is a 100 percent-owned subsidiary of Centum Investment Company and had generated Sh8.2 billion in sales, with a cash collection of Sh5.8 billion in the year to March 2024.
This year’s gains on Riverbank residences beats that of last year when prices appreciated by 6.6 percent from Sh15 million as that on Loft residences rose by 12.5 percent from Sh40 million.
Monthly rent on a unit at Centum Re’s Loft residences, which are high-end duplexes, is now at about Sh400,000 while a one-bedroom unit at Riverbank residences is at Sh150,000 per month.
“Real estate offers stable monthly rental income with a possibility of escalation with property values appreciating over time,” said Kenneth Mbae, managing director at Centum Re.
Mr Mbae noted that the Centum Re’s real estate investment projects have attracted investors seeking to diversify into investments that are not prone to volatility as is the case with other classes of investment such as equities and currency trading.
“Investment in real estate allows investors to stabilise their portfolio where the price and dividends from shares or money market take swings based on market conditions and interest rates. Real estate allows investors to increase their net worth overtime,” said Mr Mbae.
Mixed-use developments such as Two Rivers target individuals seeking an environment for family and business.
The residences come with a range of facilities and amenities including theme parks, cinemas, sports complex and shopping and entertainment spots.
Centum Re’s projects include a development pipeline of 10,000 units covering more than 8,434 acres in Nairobi, Kilifi and Entebbe, Uganda.
