KENYA – The UK based private equity fund, Actis has partnered Indian real estate developer, Shapoorji Pallonji to develop US$120.42 million (SH12 billion) middle-income housing in Kenya.

In addition to Kenya, the joint venture formed between the two companies will involve development of develop affordable and middle-income housing in the sub-Saharan Africa region.

Actis brings in expertise in flagship retail, office and industrial assets in the world including Africa while Shapoorji Pallonji’s has 153 years of experience in construction and real estate development.

Rising middle class and need for affordable yet decent housing are the main factors driving growth of real estate industry in Kenya and Sub-Saharan Africa.

According to Kenya National Bureau of Statistics, the middle is defined as consisting of households, which spend between US$240.82 and US$1,204.09 per month while upper class comprises of those who spend more than US$2,006.82 a month.

“Residential remains the largest real estate asset class globally. In several African markets, however, delivery is highly fragmented,” said Koome Gikunda, director at Actis.

There is a notable lack of institutional quality home builders with the expertise, capital and consumer trust to truly address the opportunity at scale.

Actis’ joint venture with Shapoorji Pallonji seeks to remedy this in partnership with our local stakeholders.”

Actis has been an active player in Kenya’s real estate and has worked with Shapoorji in India delivering thousands of high quality, aspirational homes at affordable prices.

Actis was the developer of 47-acre Garden City Mall which houses retail, residential and office space.

Last year, the firm began construction of a US$542.11 million business park adjacent to Garden City Mall, that will house the head offices of beer maker East African Breweries Limited.

The complex will offer more than 25,000 square metres of office space, with a healthcare facility, two hotels and more than 400 mid-market residential units.