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11 February, 2017

Real estate has consistently out-performed other asset classes in the last 5-years, generating average returns of 25% p.a., compared to an average of 10% p.a. in the traditional asset classes. During today’s Wealth Management Training session, Shiv Arora, Head of Private Equity Real Estate at Cytonn Investments, trained on the real estate market in Kenya and the investments opportunities available in real estate, and the various ways investors can access the attractive returns in the asset class.

                                     Shiv Arora Conducting the Training


For private players, planning for an investment in a real estate project requires many steps; spanning from market research and feasibility tests/modeling, budgeting and project finance/fundraising, project management and eventually exit.

Shiv explained that the capital intensive nature of real estate projects requires players to have a strategy for accumulating the funds to embark on a project of this nature. Some strategic ways that any company can tap into this include:

      Institutionalize development

      Structuring real estate into investment instruments that are focused on target returns

      Coupling fundraising and development

Professionalized development