Fusion Capital has successfully exited its residential development in Athi River, Machakos County, realizing 2x return for investors.

The Graceland Athi River development involved the construction of 80 semi-detached houses and provision of amenities and landscaping in Athi River, a fast growing industrial and residential satellite town close to Nairobi, Kenya.

Construction work on the project, targeted at middle-income purchasers, began in 2008.

Fusion provided Hand-in-Hand Development Ltd with a private investment to complete the KES600m ($5.92m) development.

Hand in Hand is a Kenyan-focused real estate developer, with offices in the UK and Kenya.

Grant Smith, Managing Director of Hand in Hand, said: “It is great to get to the end of a good project, it wouldn’t have happened without Fusion’s support.”

The investment involved an innovative equity-like structure, involving redemption linked to house sales.
The bond was for a seven year period, but Fusion Capital has been able to exit two years early.

Luke Kinoti, CEO of Fusion Capital said: “We are delighted to have worked with Hand in Hand to realize their dream of a high quality residential development in Athi River.”

“We are pleased to play a role in providing good places to live for hardworking Kenyan families, and are particularly pleased with the way Hand-in-Hand has attended to workforce and environmental best practice throughout the construction period. They have been a great partner for us, and we hope to work with them again,” he added.

The three bedroom houses, each with a separate DSQ were carefully designed to appeal to the middle-income market, and were offered for sale at escalating prices through the construction period, with the last houses being sold for around KES11m each.

Fusion Capital is a private equity house and real estate developer designed around the needs of local businesses in the emerging economies of Africa.

Founded in 2006, Fusion has presence in Kenya, Rwanda and Uganda.

The firm invests in a pipeline of opportunities in the real estate scene by financing developments such as middle income housing; luxury residential development; grade A office blocks and warehousing.