New Heri Homes launches Dagoretti Housing Project

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Feb 21, 2017
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By Kiptanui Rutto
New Heri Homes Housing Co-operative
Society Limited has kicked
off construction of Kikuyu Heights
Homes in Dagoretti South. The building site
is a few metres from Equity Bank along Kikuyu
Road.
Speaking during the ground breaking
ceremony, Dagoretti South MP, Hon. Dennis
Waweru who was the chief guest, lauded
Heri Homes for choosing Dagoretti constituency,
saying that Co-operatives play a crucial
role in the country’s investment arena. The
function was also attended by the Society’s
engineers and other stakeholders.
Mr Waweru said there is a huge demand
for houses and that all should emulate what
the youthful Heri Homes Directors have
done
Speaking to Sacco Review at the side
lines of the ceremony, Mr Ephantus Kimotho,
Heri Homes CEO said the Co-operative
focuses on developing apartments and town
houses in areas where there is a high rental
yield.
Mr. Kimotho said that the Co-operative
uses a low risk finance strategy or ‘equity
model’, where part of the capital is raised
through social capital as equity as opposed
to debt.
He said the Housing Co-operative has
grown by expanding its network in Kenya as
well as having a presence on the international
market. Its home solutions that are both
practical and sustainable continue to attract
customers.
“Our business model has evolved over
time to developing apartments and town
houses in areas where there is high rental
yield. We use a low risk finance strategy to
put down all our projects,” said Mr Kimotho.
Kimotho said the strategy reduces the
cumulative cost of a specific housing unit
by eliminating the hefty interest cost that is
ordinarily transferred to the end buyer by the
developer where a debt model is employed.
“With this model, Heri Homes has
achieved a lot of success,” said Mr Kimotho.
Mr. Paul Mugo, the Housing Co-operative’s
Marketing Manager said that quality
and affordable housing units the society’s
top priority. He said the co-operative society
has chosen to locate its houses in attractive
areas so as to generate high rental incomes.
Mr. Mugo disclosed that apart from the
Kikuyu road project, the Housing Co-operative
Society is also developing other housing
units in Kitisuru and Athi River (Daystar
Hostels), using the equity model. The rest
of the capital is raised through pre-sales of
housing units.
In addition to real estate, Mugo said the
society has also invested in purchase of land
in strategic areas with a plan to resale them.
The Society is currently creating awareness
of its projects both in Kenya and overseas.

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