Kenya - Real estate boom draws global marketing firms
The real estate boom has caught the eye of international marketing firms, which have intensified efforts to link up local developers with opportunity-seeking foreign investors, particularly those based in Europe and other emerging economies.
A team from Reed Midem, a France-based international marketing group, was in Nairobi last week, seeking to register local real estate developers for next year’s annual real estate exhibition conference —dubbed MIPIM— in Cannes.
They included asset management companies, institutional investors and hedge fund real estate investment trusts and hotel groups.
Promoters of Tatu City project—which was launched last week, attended the MIPIM conference last year, where they crystallised their idea to launch the Sh240 billion real estate plan.
“After the conference last year, we got very good responses and contacts and this gave us the encouragement to launch this year. It gave us international exposure and helped us interact with investors from different parts of the world,” said Mr Josephat Kinyua, a director at Tatu City Limited.
“The potential for growth here for real estate in the East African market is enormous. Investors are asking about this part of the world” said Germain Daleau, the Reed Midem Sales Manager at a media briefing last week.
“Last year we had about 50 companies coming from Africa mainly from South Africa and Nigeria. There is a demand for information from the global investment companies because of the potential here,” he added.
Another company, Stenon Africa, has been running adverts in local newspapers calling for investors who are willing to put money in the rapidly growing Indian sub-continent.
Hussaini Nawala, director of Stenon Africa said the company is targeting the big local population of Kenyans of Indian origin.
“There are a lot of Indians and people of Indian origin in Kenya, this is why we have chosen to advertise this investment opportunity here,” said Mr Nawala.
World Bank data shows that high income country economies that include the United Kingdom and United States shrunk by approximately 3.3 percent last year, while developing economies grew by 1.7 per cent.
Projections show that the United States economy will grow by 3.3, 2.9 and 3 per cent this year, 2011 and 2012 respectively; while Euro area countries are forecasted to grow by 0.7, 1.3 and 1.8 per cent respectively.
Article from: businessdailyafrica