一、Total acreage is 780 acres with mostly red soil and topography is flat and gently sloping in some areas. Shape is rectangular. The land is approximately 15 mins away from the Nairobi Central Business District and is in a suburb whose character is mainly dominated by commercial retail and middle-income residential developments (townhouses and apartments. The land is well situated as a suburban area and has good transport links through the Northern Bypass, Thika Road and Kiambu Road. It has good proximity (5 to 10 mins away) to education facilities up to university level, hospitals and large retail shopping malls such as Two Rivers, Garden City, Thika Road Mall, Ridgeway Mall and Rosslyn Riviera Mall (In terms of size, these malls are all above 20,000 SQM of lettable area). Close to two Golf Courses (Muthaiga and Windsor) and Hotels. The parcel of land is currently run as a commercial agriculture farm with the following characteristics: Arabica coffee grown and actively maintained on 350 acres on 26 blocks of coffee. Scientific and modern management, well irrigated and mapping down to yield, costs and input per block This data has maintained over the course of many years.
二、Hay (Napier grass) is grown on 80 acres for feeding 108 pedigree Ayrshire dairy cows. There are 8 modern milking machines in place milking the cows 3 times a day and generating 1,600 litres a day. The farm has a milk pasteurizing machine that has a capacity of 1,600 litres as well. All milk is fully sold every day. Man Made water filled dam is onsite and sits on 23 acres. Fed by a permanent river - Riara River from Kiambu. A smaller secondary water filled dam of 80sqm sits on the farm as well. Well irrigated with two mechanical pump houses and irrigation lines around all 26 blocks that are under coffee. Many acres are grown with maize for feeding the cows with organic meal. The current value of land in the area is in the region of USD 257,500 per acre giving a total acquisition cost of USD 200.85 million. The owner of the land has expressed willingness to settle at USD 202,500 per acre leading to a total consideration of USD 157.95 million for the entire parcel. This is a discount to the market of 27% or USD 42.9 million on entry at those terms. The parcel is held as a block by a single husband and wife who has operated the parcel as a commercial farm for the last 40 years and being elderly, are looking for an exit as part of inter-generational and estate planning.
From an investment perspective, there is an opportunity to either:
a.Operate the parcel as a commercial farm and make improvements to overall revenue and cost management with a focus on yield enhancement.
b.Due to its location and proximity to Nairobi Central Business District (approximately 15 mins away), it set up a master planned commercial and residential real estate development program.
This can either be funded by:
1.Commercial or multi-lateral debt finance whose interest payments can be serviced by the cash flows generated from the commercial agriculture activities either fully or partially.
2.Equity finance to purchase in full, the entire parcel at the aforementioned or better negotiated terms.
3.A combination of the two options above.
The land of 1100 acres is located near the Lake Naivasha it's an hour and half drive or a 30-minute flight from Nairobi and (26km from Naivasha town and 14 off the Nairobi-Nakuru Highway. It's along Moi North Road. It's also about 2.5km from The Great Rift Valley Lodge. It is ideal for hospitality business by investors. The entire road from Delamere to the farm is all a tarmacked road to the farm. The land is being handled by a fully registered company with shares.
The land per 1 acre is going for US$17,142 which is negotiable.
This can either be funded by:
1. Equity finance to purchase in full, the entire parcel at the aforementioned or better negotiated terms.