CO-OP BANK TO ALLOW CUSTOMERS TO PURCHASE LAND ON LOAN
Co-operative Bank is set to finance the purchase of CIC’s subdivided plots located in Kiambu County by customers seeking to buy the properties and use them for development.
The partnership will see the Nairobi Securities Exchange (NSE) listed lender, which will handle the purchase process, provide financing where buyers will be granted access to their plots once the loans are approved.
The land is part of a 200-acre property neighbouring Tatu City that was subdivided into quarter-acre parcels for easier sale after the insurer failed to dispose of it in one transaction.
The 200-acre property was used to secure a Sh3.4 billion loan from Co-op Bank that owns a 24.8 percent stake in the listed insurance firm.
“We have made it easier for buyers to pay for the plots either in cash or through bank financing of which Co-operative Bank is one of the financiers,” said Mr Patrick Nyaga, the group chief executive at CIC.
The quarter-acre plots will be sold for a starting price of Sh7 million.
According to the insurer, the residential plots which will be sold to homeowners will be set in courts within the larger gated community as approved by the county government.
Mr Nyaga said that in a high-demand market for affordable residential developments, Ushirika Gardens would be a good investment for buyers seeking prime real estate and they are looking forward to a high uptake of the units.
The gardens are located about 20 kilometres from the city centre.
Its features include water, power, proximity to commercial zones, schools, and other amenities.
“The last few years have seen rapid growth of residential building development and this has been elevated by demand for mixed-use developments … Ushirika Gardens is well positioned for people who want customized homes in a serene and well-developed area.”
The sale will help the company in its expansion plans as well as strengthen the financial position of the insurer.
“In addition, aligned to CIC’s strategic growth plans, this sale will also play a role in expanding CIC’s operational and financial strength, which is essential for our long-term growth and profitability,” said Mr Nyaga.
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