Phatisa, the Africa-focused private equity fund manager has entered into an agreement with Tamarind Properties to back the development of 140 single-family homes in Nakuru, Kenya, through its Pan African Housing Fund. Financial terms of the deal were not disclosed.
The project, which will be known as Nakuru Meadows, is expected to take up to two years to develop, and will be completed in two phases. The first phase will see the construction and completion of 104 units, with the balance of 36 units being completed as part of the second phase. It will be located on 10 acres near the free trading area of Nakuru, Kenya’s fourth largest urban center. As well as helping to fill part of the residential gap in this city of approximately 2 million people, the project is expected to provide 200 jobs over both phases of development as well as almost 100 jobs after completion.
The deal represents the $41.95 million Fund’s fourth and largest investment in Kenya, part of its strategy to provide equity finance to experienced and reputable property developers to enable the increase in the supply of affordable middle class housing in East Africa, Zambia and Mozambique.