Property developer Mi Vida Homes has finalized an agreement with a renowned institutional off-taker for the acquisition of a significant portion of its pioneering affordable housing project, known as 237 Garden City. While the exact value of the transaction remains undisclosed, this acquisition encompasses 30% of Mi Vida’s affordable housing portfolio within the Garden City development.
The 237 Garden City affordable housing initiative is set to receive green certification in alignment with both Mi Vida’s stringent guidelines and the requirements of the institutional off-taker. This certification will be achieved through the implementation of the IFC Edge tool.
“This transaction underscores the investment potential for institutional-grade affordable housing in the Kenyan market and the opportunity to scale up such developments through structured offtake mechanisms that address market risk for developers.” Said Samuel Kariuki, the CEO of Mi Vida Homes noting that the agreement showcases the prospect of drawing global capital to play a dual role in addressing the demand and supply aspects of affordable housing in Kenya, where there is an estimated shortage of two million housing units in the country.
The 237 Garden City affordable housing project is integrated into the larger mixed-use development situated on a 47-acre plot known as Garden City. This development includes the Garden City Mall, the Garden City Business Park, and a variety of residential offerings.
Beyond the institutional off-taker’s acquisition of 200 units, Mi Vida Homes is concurrently making units available for purchase to individual buyers within the open market segment at 237 Garden City. Mr. Kariuki observed that there has been a robust response to the Mi Vida product within the market. Notably, the initial phase of the open market component of the 237 Garden City project is nearing full occupancy, indicating a strong appetite within the market for well-crafted properties at reasonable price points. This resurgence in interest also reignites discussions surrounding buyer preferences between completed properties and the option of purchasing land for development.
Mi Vida Homes, with backing from ACTIS (UK) and Shapoorji Pallonji of India, boasts four landmark projects. Their inaugural project, Mi Vida at Garden City, reached completion last year. The company’s additional ventures, namely Amaiya at Garden City, 237 Garden City, and KEZA in Riruta, are currently at the groundbreaking stage. Mi Vida Homes holds a robust development pipeline, estimated to encompass 3,000 homes spanning the spectrum of affordable and middle-income housing segments.