The Law Society Of Kenya (LSK) has announced plans to develop two mixed use development projects in Nairobi worth Kshs 4.1 bn. The two projects will be constructed on Lavington’s Gitanga Road and South C estate, with the developments entailing:

 

• Lavington, Gitanga Road – Office for sale or subletting to members and the general public, a parking space, and a restaurant. The project is estimated to cost Kshs 2.7 bn, on a 1.2 acre piece of land.

 

• South C – An office block, residential and hospitality units. The residential units will be spread in four blocks of apartments consisting of one, two, and three-bedroom apartments, and with sizes ranging between 60 sqm and 120 sqm. The overall project will be established on a one-acre piece of land, and is estimated to cost Kshs 1.4 bn upon completion.

 

LSK’s decision will see it expand its real estate investment portfolio and revenue channels. Through its affiliate, the LSK Housing Co-op Ltd, the society has in the past ventured into the real estate market through the acquisition and sale of serviced plots within the Nairobi Metropolitan Area, Kwale, and Kisumu County. The aforementioned mixed use development projects therefore marks their first step towards real estate development. 

 

Notably, this comes at a time when real estate is a key sector boosting Kenya’s overall economy, consequently driving its investment confidence. In Q2:2023, the sector emerged as the third largest contributor to the country’s GDP, while it also expanded by 5.8%, a 0.8% increase from 5.0% in Q2:2022. Interestingly, the choice of the project’s location is also expected to yield impressive returns given that they are sample prime areas in Nairobi, while mixed use projects are offering the highest and best use of land.  

 

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