The Pan African Housing Fund (PAHF), managed by Phatisa, has partnered with Africa Reit to secure a six-acre property located in the Karen-Lang’ata area of Nairobi, Kenya.

A new development entity, owned by PAHF and Africa Reit, was established for the future development of the property.

The Karen-Lang’ata area is a well-established suburb of Nairobi, lying south-west of the city, and is home to more than five institutions of higher learning and various employers.

However, Karen-Lang’ata suffers from an acute shortage of formal, good-quality rental housing options for young adults early in their careers and those continuing their studies within the neighborhood.

Once completed, the project will provide homes to approximately 1,400 young adults, thus offering a long term housing solution to the shortage of affordable housing in the area.

The immediate benefits for the residents will be the opportunity to live within close proximity to their work and educational institutions.

The key obstacle in several African real estate markets, including Kenya, is the lack of an established developer and an investor who would risk financial and successively in the real estate sector.

Okomboli Ong’ong’a, Phatisa East Africa Partner for PAHF, said: “We pride ourselves on building good quality and affordable homes that enhance the lives of ordinary people. In order to deliver a project of this magnitude, PAHF needed to find a local partner with a proven solid track record and Africa Reit, with its building expertise, was the perfect match. Both companies are committed to delivering top quality housing while securing an attractive return on investment.”

“PAHF is backed by a pool of reputable international investors, assuring new homeowners’ investments are in safe hands,” he said.

The $41.95m PAHF commenced operations during Q1 2013 and has concluded three investments to date.

The fund provides risk capital to projects on a joint venture basis to selected developers who have demonstrated the ability to successfully execute projects in the designated real estate.

Africa Reit was incorporated in 2008 as a subsidiary company of Hardy Projects, a development company.

The company specializes in developing high end quality properties – both commercial and residential properties.