PRO-REAL ESTATE IN

DEVELOPING TOWNS
PRESENTATION BY MUTHUKUMI PETER
INTROUCTION
 Real estate-it involves land, anything permanently attached to
the land (building, road and landscape).
 Major factor of production. Plus labor and entrepreurship and
capital.
 The land scarcity makes its demand increase and thus calls for
more innovation on it to maximize the opportunity as an investor
in real estate majorly on developing towns in Kenya.
 The innovation of real estate as part of finance innovation, I have
tackled it into 3 perspective under pro-real estate namely; RE
development, RE sub-division and assemblage.
1.RE development
 Activities that involve renovation of existing real estate( land,
buildings and fixtures) and re-sale or lease them in order to
generate returns in form of cash flows.
 Development are: drainage, excavating, leveling and
dredging which increases its value and can be used to
generate returns.
 Acquisition of RE require initial capital which can be obtained
from mortgage loans, savings.
 Evaluation methods of investments like NPV , PB AND ARR
are used to get optimal expected returns at give risk level.
RE Development.

A A’ A’’

CC
C
A’
C
2.RE sub-Division
 Act of dividing land into pieces that are easier to sell or develop
them via a plat.
 The acquisition of land is in potentially developing towns( large
piece) and divide them into smaller pieces and pricing at higher
value.
 In marginalized areas, the sub-division are 50’by 50’ feet others
50’by100’ feet depending on land policies of area.
 This helps increase the value of the real estate and investor
who employed his finance there can gains.
 https://www.facebook.com/Real.Estate.Investar/videos/what-is-
a-subdivision/694537484657371/
RE sub-division
 A- The land is acquired RE
(LAND) outstretch of town
center.
A
 B &B’- the land sub-division
for setting up the rental and
industry in developing town
centers.
 Either B& B’ can be sold at
higher price after
development is done.
B
B’
3.Assembage
 This is joining 2 0r more adjacent lands or structure into one parcel.
Done where there is need of the more space for the project investor
want to invest in.
 Risk due to high initial capital to negotiate with the neighboring land
owner to sell it.
 Smaller previously held piece plus newly owned can be used to set
up industry, firm if its in town center or if outstretch of the center
then it can used to extent the rental houses.
 Compliance to acquire them are followed the latter through Ministry
of land and municipal regulations to avoid case of land grabbling
and fake land ownership details.
 https://www.adventuresincre.com/deep-dive-land-acquisition/
Assemblage
 A- was the previously owned
land piece, the acquire
B adjacent (B,C &D) to make it
D one big land/plot which the can
accommodate the kind and
A size of structure want to set up.
C
 K & L –are originally owned
land but investor wants to
expand his operation to bigger
firm then K will acquire land or
M L building in area around M and
K N L acquire land at N.
Benefits of Pro-RE Innovation.
 Utilization of minimal supply of land to set up structure for
investments.
 Optimization of the opportunity by the investors in RE.
 Help curb the growth of slums houses in developing towns
since slums occupy large space and poorly planned.
 Minimize the landless people and squatters since in
developing town the rental houses are cheaply affordable.
 Provide employment for the society and residents.
 Maximize returns for investors.
 Help in economic growth of the country through REITs.
THE END OF PRESENTATION.

THANK YOU.