Upscale hospitality project in Watamu Beach, in Kilifi County, Kenya. Joint venture transaction looking for $ 5 million construction of upmarket holiday residencies.
The project shall involve the construction of 49 two and three bed apartments on a two acre parcel of land. We are developing an upmarket apartment hotel in one of the country's more exclusive preferred holiday destinations. The proposed facility incorporates various services and amenities which include a self catering apartment concept, fitness and a wellness centre, Jacuzzi, study rooms in each apartment, various sporting amenities such as a tennis and a squash court, state of the art club house. The project is to be located in a five star location and lies second row from the beach and 15 minutes away from turtle bay beach. It shares its boundary with the renowned Temple Point Resort and the Watamu Marine National Park. Our key target market segments include both the domestic as well as foreign tourist. We plan to start operations with a minimum room rate of US$300 to $500 for the two bedroom units and the larger penthouses respectively. As a hospitality business the aim shall be to use best in class promotional activities to market the facility and further to rope in an established operator who is experienced in four star hotel boutique establishments. The project shall also create a unique hotel brand that will additionally market it and ensure strong revenues and be able to compete favorably well with other hospitality developments in the area within the projects peers range. The project is expected to take approximately 24 months for construction and operations shall commence 6 months after. The project is sponsored by the project landowner and currently we have received all permits to commence construction. We are targeting to raise US$ 5,000,000 in equity and debt and we are looking to provide a 49% equity shareholding to the potential investor.The project is able to yield a return of 22% p.a.
The project has a total project cost requirement of US$ 5.1 million. We are looking at funding the total development cost that includes the actual construction costs, pre-opening expenses, the payment of professional fees, financing costs, legal costs as well as other minor miscellaneous costs. The project sponsor has already spent US$1 million in the purchase of the property and other related costs associated in conceptualizing the project to this stage and we expect to raise financing through a single round.