Kenyan Students Christian Fellowship (KSCF) Investment Project - 2018/2019
When Wellers Impact builds an impact investment opportunity, we set out to transform lives and achieve an attractive financial return. In doing so, we deliver a fair deal both for investors and our charity partners. Our current investment is no exception.
In partnership with Kenya Students Christian Fellowship (KSCF), a prominent Kenyan educational charity, we are constructing a Grade A commercial property in Westlands, in the heart of Nairobi.
Since the 1960s KSCF has had an agreement with the government to provide education, guidance and assistance to tackle tough issues throughout the secondary school system. However, due to funding issues they are only able to operate in approximately half of Kenya’s 8,000 secondary schools. In return for this partnership KSCF has agreed to contractually target to be in all of Kenya’s secondary schools, mutually benefiting the charity as a result of the levels of rental income this project will deliver.
Despite a lack of cash flow, KSCF, like many Kenyan charities, is asset rich. Their central Nairobi plot is ideally situated near to the city’s main road, Waiyaki Way, and is also close to the Sarit Centre and Westgate shopping mall. It is an area popular with banks and embassies and for that reason is highly prized by developers. They have been approached by unscrupulous property developers in the past due to the attractiveness of their land plot.
The team at Wellers has been in relationship with KSCF for many years and having undertaken in-depth due diligence with Knight Frank and others, we are now ready to partner with KSCF to utilize this land to its full potential. The project is expected to release up to $550,000 p.a. to the charity and support 8,000 roles.
Having just completed our development with CMS Africa in Nairobi, we have invested over half a million dollars into the project in 2018 and have received permission to develop a grade A’ commercial office complexion the 0.68 acre plot. We are expecting the development to comprise of up to 20 floors. It will contain 141,000 sq ft of office, conference and restaurant facilities as well as four basement levels providing over 240 parking spaces. In addition, from start to finish the construction process will be performed as sustainably as possible, including providing an apprenticeship scheme on-site.
Construction is expected to start this year and will continue over a 20-month time-frame. Return on investment is targeted at 15% p.a. (pre-tax). If you are looking to do good with your money while still seeing an attractive and risk-adjusted return on investment, find out how to get involved with our project via the ‘Contact Us’ page. Alternatively, read about our previous project with CMS-Africa here.