Opportunity Snapshot
- Country: Kenya
- Industry: Real Estate
- Stage: Start-up
- Investment size: $1,400,000 / min. $700,000
- ROI: 30% in 2 years
- Type of investment: Equity
Investment Opportunity
This is an investment project proposal for the construction of 10 holiday homes in a strategic vantage location in Kenya with potential for good returns.
The project will involve construction and sale of 10 holiday homes on land measuring about 3 acres. The project should take approximately 24 months to complete upon availability of the initial project funds. Total project cost is estimated at US$1.4 Million including purchase of the land.
Competitive Advantage
The proposed project location is easily accessible and has spectacular views, enjoys year round great weather, is an exotic tourism hub and is an undisputed gateway to adventurous expeditions as well as natural attractions. There are currently other real estate projects in the pipeline by both local and international investors relating to gated communities, hotels etc.
Rationale for the deal
The land will be owned by a limited liability company upon registration. The new investor will own 90% shares of the LLC and take home 70% of the profit margin. I have previously managed and oversighted construction of two residential houses and a commercial rental apartment which my family still co-owns with the financial institution which financed the projects. I have a reliable team of subject matter experts in the real estate industry who exemplary offer their professional services. I am passionate about real estate, focused, a team player, trustworthy and a person of integrity. I have worked in the financial sector for 20 years.
Use of financing
To ease the financial impact of the total funding cost of the project, I propose to carry out the construction in phases after putting in place the initial infrastructure e.g. access roads, a stone security fence, electricity power, water bore hole etc. At the commencement of the project, marketing of the holiday homes off the architectural plans shall start in earnest.
Initially, construction of the holiday homes shall be done sequentially until funds are available to construct more than one unit at a time. Consequently, it is anticipated that by the time the first unit is completed there shall be an inflow of funds that can be utilized to start construction of the next units. Ultimately, this approach will facilitate early booking and selling of some of the units prior to the end of construction. This shall be achieved through pro-active networking with and through property managers, word of mouth and advertising on the electronic and print media.
Opportunity for the investor
The new investor will own 90% shares of the LLC and take home 70% of the 30% or more of the expected net profit margin. I will be fine with an investor who is either silent or hands on.
Upon completion of this particular Investment opportunity in Kenya, we shall embark on subsequent similar ventures.
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