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REAL ESTATE INVESTMENT TRUST

(REIT)
A REIT is set up as a company that owns,
manages and develops real properties with
which it and its management have
developed successful experience

REITS invest in different kinds of real estate

or real estate related assets, including
shopping centers, office buildings, hotels,
and mortgages secured by real estate

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 Types….
Equity REITS

invest in or own real estate and make money for
investors from the rents they collect

Mortgage REITS

which lend money to owners and developers or invest in
financial instruments secured by mortgages on real
estate; and

Hybrid REITS

which are a combination of equity and mortgage REITS

Africa REIT Limited

 OBLIGATIONS OF REITS
As stated by the Capital Markets Act,

A real estate management company is

responsible for managing the funds or properties
of the scheme on behalf of the unit holders

To comply with such guidelines, directives,

circulars and instructions as may be issued by
the Authority on the subject of real estate
investment schemes
Africa REIT Limited
 INVESTMENT LIMITATION

The scheme shall only invest in real estate

The real estate shall generally be income

generating

Africa REIT Limited

 CMA DIVIDEND POLICY

The scheme shall distribute to unit

holders as dividends each year
an amount not less than 90% of
its annual net income after tax

Africa REIT Limited

WHY INVEST IN PROPERTY IN KENYA?
Kenya is an attractive destination for real estate
developments because of the positive economic growth

Serious scarcity of accommodation particularly in the

low-cost housing segment

Real-estate provides attractive returns in this region as

compared with almost all other investment opportunities

Africa REIT Limited

 RISK FACTORS:-
The Business Risks

Property Prices

Borrowing risks

Rental defaults

Country Risks

Political stability

Offer Risks

Lock in period of approximately 24 months within
which the shares of the company will not be
transferable – Africa Reit Ltd
Africa REIT Limited
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 BUSINESS OVERVIEW
Africa REIT Ltd is a private real estate investment company that
provides equity funding for commercial and residential property in
Africa

Africa REIT Limited was formed to:

 Provide investors with a portfolio of real estate investments in

selected properties in Kenya and the East-African region at large

 Provide equity funding for commercial and residential property in

Africa

• Develop property, acquire, own and manage commercial and

residential sectors

Africa REIT is associated with Hardy Projects Ltd

Africa REIT Limited

 ABOUT US : –
• Our Vision
To be an engine of economic growth in the
African continent through real-estate
development

• Our Mission
Consistently provide quality commercial and
residential property to our customers, delivered by
a team of professionals, while creating investment
value to our shareholders

Africa REIT Limited

 REASONS FOR THE OFFER
1. Great potential in Real Estate Sector in
Kenya

2. Opportunity for the prospective investors

to diversify their investment portfolio

3. Expand the Company’s shareholder’s

base
Africa REIT Limited
 INVESTMENT STRATEGY
The company has identified for investment:

a) Properties with a high potential for attractive

capital gains
b) Properties with a high potential for attractive
rental incomes
c) Shares in companies that have invested in
properties with features described in (a) and (b)
above and a strong balance sheet

Africa REIT Limited

 OUR PORTFOLIO
COMMERCIAL PROPERTY
1. Project Hardy House - Commercial Office
Development : –
– Location: Upper hill, Nairobi
– Develop - To Let
– Size: 64,560 Ft2 building
– Features: Commercial building, 11 floors including 3
levels parking & banking hall
– Vicinity of the World Bank, Coca Cola, Embassies
etc
– Building commencement date – Feb 2009
– Targeted completion date – Q2 2010
Africa REIT Limited
HARDY HOUSE – ELGON ROAD
UPPER HILL

Africa REIT Limited

2. Project Hardy EPZ - Technology
Park Development :–

Location: Athi River, Kenya

Develop - To Let

Features: 300,000 Ft2 technology fitted
offices, 10 block development each covering
an estimated 30,000 Ft2 including conference
facilities and a multi-facility sports centre, on
25 acres (Phase I)

10 year Tax holiday

Building commencement date – Q3 2009

Targeted completion date – Q1 2011
Africa REIT Limited
Project Hardy EPZ - Athi River:-

Africa REIT Limited

3. Hardy West-End CBD - Commercial
Development Project : –

Location: Nairobi CBD

Renovate to Let

Vision: Renovate a specific area within the CBD
into up-market commercial & entertainment
centre

Location: CBD, neighboring 5-star hotels, several
theatres and restaurants

Status: In negotiation to purchase first old
building

Expected renovation commencement: 2011
Africa REIT Limited
Hardy West End – Nairobi CBD

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 Residential Property

1. Wood Avenue Apartments : –

Location: Kilimani, Nairobi

Develop - For Sale

Size: 46,400 Ft2

Features: 24 apartments; 2 & 3 bedrooms -
For sale

Located close to large shopping mall - Yaya
Centre

Building commencement date – April 2009

Targeted completion date – Q1 2010
Africa REIT Limited
1. Wood Avenue Apartments –
Kilimani, Nairobi

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 2. Dennis Pritt Apartments –
Kilimani, Nairobi

Location: Kilimani, Nairobi

Develop - For Sale

Size: 25,000 Ft2

Features: 20 apartments; 2 bedrooms - For
sale

Located close to State House, Kilimani Police
station and several Embassies

Building commencement date – Q2 2009

Targeted completion date – Q1 2010

Africa REIT Limited

Dennis Pritt – Kilimani, Nairobi

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3. Athi River Housing Development : –

Location: Athi River, Kenya

Develop - For Sale

Features: 400 Housing units and commercial
centre on 50 acres

Located close to Athi River Export Processing
Zone (EPZ) and Daystar University

Status: Land acquisition negotiation

Expected commencement: Jan 2010

Africa REIT Limited

Athi River Housing Project

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 PROJECT VALUATION SUMMARY
PROJECT TOTAL PROJECT EQUITY ESTIMATED
COST (KSHS) REQUIRED (40% COMPLETED
OF COST) VALUE ( KSHS)

Wood Avenue 198,544,000 - 269,500,000

Apartments
Dennis Pritt 113,520,000 - 184,000,000
Apartments
Hardy House Ltd 369,606,320 147,842,528 1,000,000,000

Hardy EPZ Ltd 1,155,000,000 462,000,000 2,000,000,000

Athi River Housing 870,000,000 348,000,000 1,600,000,000

Hardy West End 641,310,000 256,524,000 1,500,000,000

TOTAL(kshs) 3,035,916,320 1,214,366,528 6,553,500,000

USD Equiv $ 37,500,000 $ 15,000,000 $82,000,000

Africa REIT Limited

 PRICE PER SHARE
COMPANY AFRICA REIT LIMITED

TOTAL EQUITY REQUIRED* 1,200,000,000/=

TOTAL NUMBER OF SHARES 100,000

EQUITY AVAILABLE FOR SALE 40%

NUMBER OF SHARES FOR SALE 40,000

PRICE PER SHARE TO NEW 30,000/=

SHAREHOLDERS
* TOTAL EQUITY ROUNDED OFF

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FOR MORE DETAILS PLEASE CONTACT:

AFRICA REIT LIMITED,

Upper hill, Elgon road,
P.O. Box 15397 – 00509 ,Nairobi, Kenya
T: +254-(20)-2710320 / 2724350 / 0770-166566
F: +254–20-2724788
E: info@africareit.co.ke
W: www.africareit.co.ke

Africa REIT Limited