Barclays Bank of Kenya has announced a partnership with Centum Real Estate, the real estate arm of Centum Investment Company Plc, to finance buyers of the houses currently under development. Under the partnership Barclays will provide up to 100% financing for properties below Ksh. 10 million and up to 90% financing for properties above Ksh. 10 million.
The agreement will see Barclays financing residential units, both off plan and established, developed by Centum Real Estate in Nairobi and in the Kenyan Coast. Centum Real Estate is developer of mixed-use real estate and has embarked on a 5-year strategy under Centum 4.0 to deliver up to 10,000 housing units across East Africa. Under the strategy, the company will focus on the mid-market to affordable housing segment. The firm has broken ground on different projects across the portfolio with a total size of 2,822 units.
So far, several units have been identified under this collaboration which include those situated in Kilifi County along the Mombasa Malindi Highway namely Palm Ridge Estate and Awali Estate both under Vipingo Development Limited. The Palm Ridge Estate, which comprises 1,255 residential units, goes for between Ksh. 2.5 million and Ksh. 4.6 million for 1, 2 or 3 bedrooms.
Others are residential units located at Two Rivers Development, The Riverbank Apartments. It is a high end 168-unit housing project, ranging from Ksh. 16 million to Ksh. 30 million and Cascadia Apartments a mid-market 400-unit housing project comprising of 1,2, or 3 bedroom units and duplexes, ranging from Ksh. 8.5 million to Ksh. 23 million.
Speaking during the signing of the partnership, Barclays Bank’s director of Retail and Business Banking, David Hardisty, expressed enthusiasm at the move stating that the partnership is in line with the bank’s purpose of bringing possibilities to life.
“As Barclays, we are committed to supporting the government achieve the affordable housing agenda. As a shareholder of the Kenya Mortgage Refinance Company, we will finance homes at affordable rates. In order to encourage affordable home ownership, Barclays will provide 100% financing for properties below Ksh. 10 million. This will enable access to mortgages for individuals who are not able to raise the required 10% deposit,” Hardisty said.
Barclays has been playing in the mortgage space for many years offering some of the longest-tenured mortgages on the market of up to 25 years. The bank offers several solutions including new home purchase plans, Buy to Let, Construction Mortgage, Plot and Construction, LaRiba Mortgage as well Foreign Currency Mortgages.