Point Properties Ltd – Articles of Interest

6 Reasons why you should invest in Lavington

Lavington is a well-established and upscale suburb. It is close to major business districts, shopping centers, and healthcare facilities, making it convenient for both residents and businesses. Prime Location Lavington is one of the biggest high-end suburbs in Nairobi which is located to the northwest of the city center. It is part of the Kilimani County assembly ward, which is in Dagoretti North Constituency, in Nairobi County. It is closely bordered by Riverside, Kileleshwa and Kilimani estates. It is located 4.7KM from the CBD and 24 KM from the Jomo Kenyatta International airport. Although this suburb mainly features high end residential gated communities, it also has commercial and business areas, making it an ideal place for those looking for an urban living lifestyle. In the past few years, Lavington has undergone several developments which have led to the emergence of various infrastructures and industries that have greatly improved the social economic aspects of the suburb. Some of these features are covered in this article and are the reasons which make Lavington a great place for real estate investments. High demand for real estate The demand for quality residential and commercial real estate in Lavington is consistently high due to its…

For those who haven’t invested before, you may be wondering what off-plan property is? This is essentially buying a property off a floor plan, prior to it being built. These kind of properties are either starting construction or are in the construction process, depending on where you are in your purchase journey. WHAT TO CONSIDER WHEN BUYING AN OFF-PLAN PROPERTY There’s an increased skepticism about off-plan property particularly in Kenya, and this can be due to a variety of factors ranging from developer track records to the history and experiences of off-plan buyers. So what factors should you be considering when deciding to purchase off-plan? Who are the teams and are they credible? The first facet of reassurance during your real estate journey lies in the hands of the developer and collaborators around the project. The people who are handling the project should be your key indicators as to whether or not you should purchase their development. It’s essential to look at the background of the property developer to see what they’ve done in the past and see whether there is success attached to it. You may be wondering, what if this is a first time developer and you have…

In Kenya’s dynamic real estate market, identifying lucrative investment opportunities requires a keen understanding of local trends, economic indicators, and emerging developments. HOW TO IDENTIFY REAL ESTATE INVESTMENT OPPORTUNITIES IN KENYA Real estate investment in Kenya can be a profitable venture for those who are willing to put in the effort. However, with numerous investment options available, it can be challenging to determine which opportunities are worth pursuing. In order to make sound investment decisions, you need to have the right knowledge to evaluate the potential of a property. Investing in real estate requires careful consideration of various factors as they can have a significant impact on the success of your investment. Location of the real estate investment Location is one of the most critical factors to consider when investing in real estate in Kenya. The location of a property can significantly affects its value, rental income potential, and resale value. Factors, such as accessibility, infrastructure, and proximity to amenities are important to consider. A property that is located in a desirable area with good infrastructure, easy accessibility, and close proximity to essential amenities. Schools, hospitals, shopping centers, and other amenities are likely to attract higher demand and command a…

Property fund Laptrust Imara I-Reit made a net profit of Sh99.6 million in the six months ended June, marking its first financial report since its listing on the Nairobi Securities Exchange. Laptrust said it had made Sh167.1 million in rental income from its property portfolio which it valued at Sh6.8 billion in the review period, while utilities and interest income contributed Sh36.2 million to the fund’s revenues. Rental income would give the Reit an annualized rental yield of about five percent. Properties that are held under Imara include CPF Metro Park, CPF House, Pension Towers, Freedom Heights Mall and Service Plot, Man Apartment and Nova Eldoret. The Reit is however not distributing any of the net earnings to unit holders (shareholders) on an interim basis, citing the ongoing transition following its listing in March. “Due to the ongoing transition period, the Reit manager has not declared any interim dividend for the period ended 30th June 2023,” said Laptrust. The Laptrust Reit is one of two listed on the NSE—the other being ILAM Fahari I-Reit—while property developer Acorn has issued development and investment Reits built on its student units. The Acorn Reits are unlisted but trade on the over-the-counter (OTC) market….

I have read your series on leasing and licensing office spaces. It is my long-term plan to purchase my own office space. How do I go about due diligence given the many scams in the market? Collins Dear Collins, below I will set out some factors to consider when doing due diligence for purchasing a property. Once you have identified a suitable location and are ready to transact then this is where the legal process begins. It begins by identifying suitable premises and doing a site visit to inspect the premises. Once you have done the site inspection and are satisfied then the next step is to do due diligence. Request a copy of the title deed and carefully check the title. It will reveal details such as the tenure of the land. Is the land a freehold or a leasehold? A leasehold means that the government has granted the owner a long-term lease, which is usually renewable. If leasehold you will need to check the remaining term of the lease. For example, if the title says 99 years from 1924, this means that the lease term has expired. The owner will, therefore, need to apply for a renewal. A…

Centum Real Estate has posted a net profit of Sh174 million in the year ended March, reversing a restated net loss of Sh486.9 million recorded the year before. The return to profitability was largely helped by a large unrealised gain on its investment properties. The property developer, a subsidiary of listed Centum Investment Company, saw the gain in its real estate assets more than quadruple to Sh2.1 billion from Sh513 million. “The group recorded property valuation gains … on the back of extensive infrastructural investments within our land banks and accelerated development activity by third party development,” Centum RE said in a statement. The company’s revenue from the sale of residential units increased to Sh1.9 billion from Sh1.8 billion. Gross profit from these transactions, however, fell to Sh285.6 million from Sh334.7 million attributed to higher cost of sales. “Of the 895 residential units that have been completed, an additional 222 met the revenue recognition criteria and were recognised during the year ended 31 March 2023,” the company said. “We expect revenue and profit from the balance of these units to be booked in the financial year ending 31 March 2024.” The real estate company saw its operating expenses surge to…

Investing in real estate is a popular strategy for people saving for retirement especially among the so-called FIRE brigade, who are racing for early Financial Independence and Retirement. Not a bad idea to own some real estate. Great if you have 10 percent down and are okay with leverage financing. For now, though, that may not work very well. Financing used to be cheap. It isn’t anymore, at least not right now with rising rates. But even if you did, betting in the right direction with borrowed money is much like buying stocks with borrowed money. Sometimes it works really well. Other times, it’s a total wreck. But if you’re thinking of following suit and investing in real estate, don’t just answer to TV ads pushed by real estate firms, check out the market too. Real estate investment trusts (REITs), which are listed entities that invest in rent-yielding assets and distribute most of their income as dividends, are another alternative. Part of the logic behind the REITs is simple. The trusts are required by law to pay out 90 percent of their taxable income in yield. That’s appealing to those who may not get that much income from some mutual…