Mixed Use Student Living - Update Q4 2018
World Bank data estimates that there are 200-million youths (15-24) in Africa’s population, making it on average the youngest on the planet. The UN recently stated that half of the world’s population growth would be in Africa in the next 30 years. It is for these financial and social reasons that Wellers Impact’s projects focus on improving quality of life and opportunities for this important demographic.
Nairobi currently has 14 universities and a large selection of other higher-learning establishments. These institutions typically lack superior, well-located and secure student accommodation adjacent to high quality communal facilities. Ambitious government education growth targets will only accentuate the surging demand for a suitable solution. To fill this gap in the market and ease demand, following an assessment of Kenya’s real estate opportunities completed with Old Mutual, Wellers Impact is arranging a substantial direct property investment in central Nairobi in partnership with local non-profits who own prime land and we are in relation with.
In a 4 year construction period we are planning to erect a 17 story student accommodation complex capable of housing up to 1,000 students and young professionals. The construction will also have two basement levels making space for 90 parking bays for rent. Each floor will be 600sqm, with 70% of that making up room space and the rest dedicated to communal living. Proximity to Nairobi’s universities and private hospital will ensure the rooms have strong occupancy levels. Investor returns are currently targeted at 15% p.a. (pre-tax). We are in the process of receiving feedback on the initial structuring from a trusted network of investors, to enable us to finalise this opportunity.
In addition to investor returns, the non-profit organisations involved will benefit from a sustainable income from this project allowing them to expand their charitable activities further and reduce their reliance on donations. Significant increases in training, education and healthcare provision are expected to follow. We will be monitoring this impact and reporting Sustainable Development Goals (SDG) outcomes to investors. Audit partners such as Deloitte will assure these results so that investors can report the results with confidence. Apprenticeship schemes will operate during construction.
Get in contact via the ‘Contact’ page for more information and inquiries into getting involved.