Kenya targeted in Sh12b affordable housing project
Actis, a leading growth markets investor and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates, are set to launch a new real estate joint-venture platform to meet the demand for affordable and middle-income housing in the sub-Saharan African region, starting with Kenya.
The residential development platform has been established to capitalize on the demand for quality homes at affordable and competitive price points.
Actis manages the largest real estate private equity fund focused on sub-Saharan Africa.
“This joint venture builds on an ongoing and highly successful partnership between Actis and Shapoorji Pallonji in India where we have delivered thousands of high quality, aspirational homes at affordable prices. We are confident that Actis’ investment experience in Africa coupled with Shapoorji Pallonji’s 153 years of experience in construction and real estate development will unlock the significant opportunity.” David Morley, Global Head of Real Estate at Actis said.
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Commenting on the launch of the new platform, Venkatesh Gopalkrishnan (CEO, Shapoorji Pallonji Real Estate), said: “We are delighted to partner with Actis in the African residential market. This venture marks the continuation of a journey for Shapoorji Pallonji Real Estate in the sub-Saharan African Region. There is a huge demand for affordable and middle-income homes and the goal of the joint-venture platform will be to bridge the gap in this market and to exceed customers’ expectations.”
Koome Gikunda, Director at Actis said: “Residential remains the largest real estate asset class globally. In some African markets, however, delivery is highly fragmented. There is a notable lack of institutional quality homebuilders with the expertise, capital and consumer trust to truly address the opportunity at scale. Actis’ joint venture with Shapoorji Pallonji seeks to remedy this in partnership with our local stakeholders.”