Financial services group Taaleri Plc and Finnish private equity fund plans to invest US$100 million in real estate projects in East and South Africa.
Taaleri, in conjunction with local private equity company Cytonn Investments, has invested around US$38.2 million in Kenyan’s property market.
The two firms are exploring more opportunities for investment in both renewable energy and real estate sectors.
“East Africa is the area where we have been active. There are tremendous opportunities in the region. We started with about $50 million with the first fund. We are going to raise new funds, double the first funds, by beginning of next year,” said Taaleri Plc chief executive Juhani Elomaa.
Mr Elomaa also said the firm was considering investing in regional green energy projects starting early 2017. Both firms have projects in Nairobi, Kiambu and Meru counties.
The firms have invested a total of US$9.8 million in Amara Ridge, a high-end residential development project in Karen, Nairobi. The project sits on five acres of land and made of 10 five-bedroom houses, each selling at US$9.3 million.
Cytonn has also invested into other sectors including the fast-growing middle income town of Ruaka on the outskirts of the capital city where it is putting up 400 units in a gated community at US$24.5 million.
The project will be completed within three years and mainly targets middle- to lower-income earners in need of modern apartments.
In Meru town, Cytonn is partnering with Fusion Capital in the development of the mixed-use Greenwood City mall, which by August of 2016 was 35 per cent complete.
According to Taaleri’s head of Africa Antti-Jussi Ahveninen, the Kenyan market is running on healthy fundamentals.
He said the Kenyan market is having a lot of width, depth and very dynamic. He is of belief that the Real Estate Investment Trust (Reits) regulations serve the market well and are well structured by the regulator, Capital
