Description

Dear Investors,

We are pleased to present a comprehensive valuation of the Kitengela Apartment Complex, which consists of 10 units of 1-bedroom apartments, 53 studio apartments, and 11 commercial shops. The property is currently listed for Kshs. 80,000,000, with a monthly rental income of Kshs. 750,000. This presentation will outline the property’s valuation, a 10-year rental income projection, and expected property appreciation.

Property Valuation: We applied the Income Approach to determine the property’s value, focusing on its rental income potential. With a purchase price of Kshs. 80,000,000 and an annual rental income of Kshs. 9,000,000, the estimated operating expenses (30%) total Kshs. 2,700,000, resulting in a Net Operating Income (NOI) of Kshs. 6,300,000. The calculated capitalization rate (Cap Rate) is 7.88%, indicating a strong return on investment.

10-Year Rental Income Projection: Assuming a 5% annual rent increase, the monthly rent will rise from Kshs. 750,000 in 2024 to Kshs. 1,163,495 by 2033. Over the same period, the annual rental income will grow from Kshs. 9,000,000 to Kshs. 13,961,954, and the NOI will increase from Kshs. 6,300,000 to Kshs. 9,773,368.

Projected Property Value: With an expected 4% annual appreciation, the property’s value will rise from Kshs. 80,000,000 in 2024 to Kshs. 118,419,200 by 2033, reflecting a 48% increase over the decade.

Conclusion: This property offers a 7.88% Cap Rate, strong rental income growth, and substantial appreciation potential. The location in Kitengela, a rapidly developing area, further ensures high demand and stability, making this a valuable long-term investment.

The Kitengela Apartment Complex is valued at Kshs. 80,000,000, generating a monthly rental income of Kshs. 750,000. We are offering investment tokens at Kshs. 1,000 each, allowing investors to own a fractional share of the property. With 80,000 tokens available, each represents 0.00125% ownership.

The monthly rental income translates to Kshs. 9.375 per token. For example, investing Kshs. 100,000 (100 tokens) yields Kshs. 937.50 monthly, while Kshs. 1,000,000 (1,000 tokens) generates Kshs. 9,375 monthly.

Over the next 10 years, we project a 5% annual increase in rental income and a 4% annual appreciation in property value. By 2033, monthly rental income is expected to rise to Kshs. 1,222,513, with the rental income per token increasing to Kshs. 15.28.

For instance, 100 tokens would yield Kshs. 1,528 monthly, 500 tokens would provide Kshs. 7,640, and 1,000 tokens would generate Kshs. 15,280 monthly. Additionally, the property value is projected to grow to Kshs. 118,419,200 by 2033, making this a lucrative investment opportunity for token holders.