Centum Real Estate has inked a home financing deal with Barclays Bank of Kenya that will see the lender finance buyers interested in acquiring Centum’s real estate properties in Kilifi and Nairobi.
The home financing agreement will cover both completed and off-plan units in Centum’s real estate developments – the Palm Ridge Estate in Kilifi County and Nairobi’s Riverbank Apartments and Cascadia Apartments.
The three real estate projects will have a combined 1,823 one, two and three-bedroomed houses. Palm Ridge Apartments will retail between Ksh. 2.5 million and Ksh. 4.6 million while the Riverbank Apartments will retail between Ksh.16 million and Ksh.30 million. Cascadia Apartments on the other hand will retail between Ksh. 8.5 million and Ksh. 23 million.
According to a news report by the Business Daily, the loans will be priced at a discount rate of between 11.5 percent and 11.9 percent which is lower than the existing maximum lending rate of 13 percent used by other commercial lenders. The bank will provide 90 percent financing for units priced above Ksh.10 million and 100 percent funding for units that go for less than Ksh. 10 million.
“The signing of this agreement with Barclays signals our commitment to ensuring that Kenyans have an opportunity to own a home in a master-planned city that integrates world class infrastructure and recreational amenities which seamlessly blend a live, work and play lifestyle,” Centum Real Estate’s Managing Director (MD) Samuel Kariuki is quoted as having said by the Business Daily.
On his part, Barclays’ Director of retail and business banking, David Hardisty, said that the move is in line with the lender’s strategy to develop its housing loans portfolio.
“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 and will continue expanding its products and services in this area,” Mr Hardisty said according to the Business Daily report.
The local daily similarly reports that Centum is in the process of developing 2,822 residential units in East Africa targeting middle class buyers over the next five years.