Investing In Garden City


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INVESTING IN GARDEN CITY

RESIDENCES

Just 15 minutes from Nairobi’s CBD, Garden City Residences offers a standard of accommodation unsurpassed in this location, with the Mall, Business Park and other Garden City facilities forming an exciting focal point for this busy and rapidly expanding area. Convenience and quality are always at the forefront with the world-class retail mall, Grade-A offices, landscaped central park and dedicated children’s play areas, and a selection of family entertainment on the doorstep.
For investors looking for yielding, investment-grade residential units, providing superior accommodation off Thika super highway, with a proven “Buy to Let” market already established, Garden City boasts a range of contemporary residential units including 2 & 3 bedroom apartments and duplexes and 4 bedroom townhouses, both for sale and rent. Garden City Residences offer investors an opportunity to take advantage of this strategic location, with multiple corporates already leasing our units including EABL, PZ Cussons East Africa Ltd, Chandaria Industries and ICIPE, and a number of businesses looking to open their doors soon.
Yield from 8 to 9%
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GARDEN CITY MASTERPLAN

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1 Main public transport drop and pick up locations 2 GC Residential- 215 units of 159 apartments and
56 townhouses 3 Garden City Mall - boasts 100 shops, IMAX cinema
and banks 4 Garden City Business Park - Circa 20,000sqm of Grade
A lettable office space spreadacross 4 buildings 5 Concept - potential hospital and hotel locations 6 Serviced Development Land 7 Mi Vida site 8 Mid market residential development 9 Willmary Estate 10 Safaricom purchased land for corporate development

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The Unit breakdown per phase is as detailed below: Phase 1:76 apartments, completed in October 2015, only 3 units remaining
Initial investors are achieving an average gross rental yield of 9.3% as compared to the market average, which is currently 6.0% (source Sagaci research 2018) Phase 2a: 56 semi-detached townhouses completed in 2016
Achieving average yields of 8% Phase 2b: 83 apartments, completed in July 2017
Achieving average yields of 7% CAGR across all the different unit typologies to date (since completion) averages to 8% per annum, giving a total return of 16% (y-on-y).
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THE INVESTMENT OPPORTUNITY
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Why Garden City Residence?
» Garden City is well located between a number of growing industrial and commercial nodes including Baba Ndogo, Thika, Ruiru & the Eastern By-Pass and with the completion of the Outer Ring Road.
» Garden City provides tenants a true live, work, play lifestyle.
» The 35,000 sqm leisure-based retail mall with a 3-acre park anchors the broader Garden City development, providing retail and leisure services within a convenient walkable reach to people living at Garden City Residences.
» A fully equipped gym, swimming pool, clubhouse and children’s pool add to the leisure activities offered to residents.
» Great value: The GC Residences were built to incorporate “Best in class finishes” at comparatively affordable prices.
» Growing demand from multinational companies and diplomatic staff (primary located in Gigiri area 10-15mins away from Garden City) for secure and conveniently located modern housing within the Nairobi market.

» The completion of the Outer Ring Road has provided a much needed reduction in travel time to and from JKIA international airport, with journey times now averaging 20-40 minutes.
» The future developments within the Garden City Master plan i.e. Garden City Business Park, a medical facility and hotel are expected to drive demand and high occupancies for the GC Residences units, particularly to house the medium to senior management staff of the corporates occupying the offices. There is currently precedence, with top management at EABL, VW and DHL (all within 15-20mins of GC ) occupying units at the GC Village.
» Higher than average rental yields currently achieved, with high capital appreciation growth potential given the long term development strategy by the developer, Garden City Residential LTD (an Actis investee company) and the various other SPV’s involved in completing the GC estate development.

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WHY TENANTS PREFER GARDEN CITY RESIDENCES
Garden City Residences remains a compelling option to live at due to theAunmiqeudeiclaivlef,awciolirtky,ipsldayue to come on line. The goal is to introduce a
HOSPITAL AT GARDEN CITY setting within a secure environment. Similarly it is an attractive opportunity for investors due to 200-plus bed hospital facility which would be the first of its kind the increasing leasing demand from individual and corporate tenants.
serving this corridor of Nairobi. 67

GARDEN CITY RESIDENCES List below of some existing tenants
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COMPARABLE MARKET YIELDS

RUNDA /RIDGEWAYS
5.27% Average Yield
LAVINGTON
5.6% Average Yield

GC ACHIEVED INCOME YIELDS
8% Average Yield

$1,578
Avg. Rent

$222,222
Avg Sales
Price

The following map illustrates the main high end residential area nodes and their average sales prices, rents and income yields within the Nairobi market as compared to the GC Residential development.

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APENDIX A
1 Living room 2 Kitchen 3 Bedroom 4 Bathroom

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Investing In Garden City