Last week, Venkatesh Gopalkrishnan, the CEO of India-based firm Pallonji group’s real estate arm, was in Nairobi, not to survey the market but to launch a Sh12 billion joint venture project between his group and another investment firm, Actis.
The venture will see the construction of 2,000 residential units.The Indian firm joins a growing list of international investors who are putting their money in Kenya’s real estate despite the dwindling fortunes, especially among local investors.Recently, local media reported the entry of Grand Towers Property Fund, a South African firm seeking to invest Sh3.5 billion in mixed-use development in Nairobi.Sh20 billion outlayXterra Capital Advisors, an equity fund based in Mauritania, wants a piece of Kenya’s real estate as well. It has committed Sh20 billion in retail, office, hospitality and industrial properties. Chinese and Middle East multinationals are also waiting in the wings to join the fray.
How, though, are such global firms finding opportunities where local investors continue to burn their fingers?