Two Rivers CEO Presentation - East Africa Property Investment
Two Rivers CEO Presentation East Africa Property Investment Summit April 2015 Two Rivers– A Prime Location Easy Access • Easy access from Limuru Road and the Northern By Pass with easy access to: v JKIA Airport v Nairobi CBD v Muthaiga, Runda, Westlands, US embassy, UN offices, Canadian embassy, international schools. 2 Introduction to Two Rivers § Two Rivers Development (www.tworivers.co.ke) is a new master planned urban node currently under construction that is set to become Kenya’s financial hub, business and residential location of choice on prime 100 acres located along Limuru Road within the Diplomatic Blue Zone area of Gigiri/ Runda, in Nairobi, Kenya. § Two Rivers Development will integrate Retail, Entertainment and Lifestyle facilities, modern office parks, residential apartments, hotels, civic, recreational and public amenities. § These facilities will be supported by high quality centrally managed state of the art infrastructure with about 30% allocated to preservation of green areas. § The site will be developed in an environmentally sustainable manner that will seek to protect and preserve the flora and fauna. § The Two Rivers Development will be constructed in phases and when complete will have an estimated build up area of 851,000 m2. 3 Our Journey – Unlocking Land Value to Date Land Acquisition Sep 2010 • Research banked land identification & purchase • Negotiation & closure Jan 2011 • Feb finalized land acquisition Dec 2011 § Change of user approval § Master plan approval 4 Feasibility & Approvals Mar 2012 • WRMA reparian reserve approval May 2012 • Nema EIA Approval July 2012 • Change of user approval Commissioner of lands Jan 2012 – June 2012 • Completed comprehensive market & feasibility studies • Commenced discussions with potential off takers, equity & debt investors • Shovel ready project Construction Commencement May 2013 – Aug 2013 • New Land Title • KURA & KENHA Approvals • Building Plan Approvals • Mall NEMA EIA Approvals • Financial close • Tender issue and • contractor appointment Aug 2013 • Infrastructure ground breaking Feb 2014 • Mall ground breaking Aug 2014 • Signing of ICDC equity investment • Signing of Carrefour as anchor tenant Dec 2014 Signing of AVIC equity investment Two Rivers Delivery Partner- Athena Properties Limited § Athena Properties Limited • A t h e n a P r o p e r t i e s ( www.athena-properties.com), is a subsidiary of Centum Investments with a mandate to offer development and project management services to Centum and other third party developers. • VISION To be Sub Saharan Africa’s lifestyle developer of choice • MISSION • Established in January 2013 and has team of 27 real estate experts who include architects and engineers To develop mixed use nodes and lifestyle retail offerings to a world class standard of excellence • Athena offers highly regarded complete suite of end to end solutions in large scale property development ranging from master planning, urban planning, project management, construction management, development management and project finance. • OUR IDENTITY We deliver value for Centum and investors We complete projects on time and to order We are commercially pragmatic We act with cast iron integrity We are innovators in our field 5 Phase 1 Development Components Under construction • Two Rivers project is a market driven project that is being implemented in phases. • Currently, construction of the first phase is underway and includes Phase 1 Component Details Phase 1 trunk infrastructure • • • • • Retail, Commercial, Entertainment& Lifestyle Centre 6 • • • • • Limuru road interchange, Northern By pass interchange Trunk infrastructure includes; roads, water, power, ICT, Sewer, land scaping. Gate house Public parks 3 level of river front outdoor entertainment & dining area. 2 basement parking levels 2 shopping levels Roof top parking 2 office towers on eight levels Status Under construction Under construction Ground Breaking Date Construction Completion Date August 2013 September 2015 March 2014 October 2015 Phase 1 Development Components scheduled for construction • Two Rivers project is a market driven project that is being implemented in phases. • Currently construction of the first phase is underway and includes Phase 1 Component Details Status Ground Breaking Date Construction Completion Date 3 star city lodge hotel • 170 key hotel Design stage September 2015 January 2017 Luxury Apartments • 105 apartments for sale Design stage August 2015 August 2017 Parking Silo • 2,000 parking bays Building plans approved October 2016 October 2017 5 star hotel • 200 plus key hotel In discussion with 5 star hotel chains January 2016 January 2018 7 Phase 1 Components – Retail, Commercial, Entertainment & Lifestyle Centre Anchor promoter and investor of the largest Retail, commercial, entertainment & lifestyle centre that integrates: • Retail on two levels • Office above the retail levels • Key Facts • 113,000 sq.m total Gross Built Up Area excluding basements • 62,000 sq.m total retail gross lettable area • 21,000 total office gross lettable area. • Over 200 shops • 2,049 parking bays Scale • Equivalent to 11 soccer fields Dominance: • Design, Offer, Size, international brands and tenants • The largest in sub-Saharan Africa outside of South Africa 8 Retail, Commercial, Entertainment & Lifestyle Centre- Support infrastructure Parking • Building plan approved for construction of 2,000 parking bays silo next to the mall This provide over 50% of all parking bays currently managed by Nairobi County government in Westlands, Nairobi CBD & Upperhill combined • 9 Retail, Commercial, Entertainment & Lifestyle Centre – Key Differentiating Factors Differentiating Factor International Brands & tenants Retail Offer • 45% of GLA will be international brands & tenants International brands include Carrefour, hypermarket, Virgin active LC Waikiki, Swarovski, Hugo Boss, Funscapes, Allied Trading East Africa, Villeroy and Boch Increased customer & shopping experience Regional Mall • • Over 200 shops A mix of international and incorporates a major local brands Entertainment • Funscapes developing the largest water features which includes • Skating rink • Children play area • Dancing fountains • Amphitheatre • Laser shows Food & Beverage • • 22% of GLA allocated towards F&B Categories include fast food, casual dining, formal dining, cafes & pastries, pubs & lounges Lifestyle • • Key offer is Virgin Platinum health & fitness centre Offer includes a 4 lane, 25m heated pool, luxurious change rooms with steam rooms, children's care facility with activity zones, state of the art cardio equipment, a functional training area, a group exercise studio, a spinning studio, free weights area 10 • • Phase 1 Components – Hotel & Apartments 2. Hotel-City Lodge § § § § Signed with city lodge To construct a 160 plus key 3 star hotel Construction scheduled to commence in September 2015 Hotel scheduled to open in Dec 2016 3. Two River Luxury Apartments § § § § 11 Construction of 108 luxury apartments Scheduled to break ground in August 2015 Pre-sales scheduled to be launched in June 2015 Include 2 bd, 3 bd, 5 bd penthouses Access Road – Limuru Road ( National Highway) Interchange Limuru Road Access • Invested USD 5Million to construct: • Dual a carriage over pass and underpass on Limuru road • Round about on the Northern by pass • Approval granted by Kenya National Highways Authority & Kenya Urban Roads Authority. 12 Phase 1 Components-Infrastructure The design is based on functionality, viability and sustainability and is conceptualized as a city within a city 1. Power • Invested USD 11M for construction a 46 Mva modular substation dedicated for the Two Rivers Development • Secured a dedicated 66 KVA line to supply power to the sub station limiting the number of brown outs for the development. 2. Portable Water Supply • Installing state of the art water treatment plant to supply 2,000,000 liters of portable water per day 13 Phase 1 Components-Infrastructure The design is based on functionality, viability and sustainability and is conceptualized as a city within a city 3. Water Treatment• Sewage treatment plants will recycle black and grey water to provide water for irrigation, fire fighting, washing and dust control. • This treatment plants will produce high quality recycled water that exceeds WHO standards 4. Security & emergency services. • Completed development of security master plan for the entire development. • Investing USD 10 M on state of the art master plan security installations. • The security master plan covers high tech CCTV , monitoring , scanning devices, central command & response centre that will cover: » The gate house, perimeter fence, all facilities, common areas and parks » Visitor management systems, access control access gateways » Other security measures include; a police post, fire response units and ambulances • ICT reticulation and infrastructure will also be developed and terminated at each plot boundary. • A gatehouse, a police post, and a perimeter fence will be developed. 24-hour fire response units and ambulance units will be provided. 14 Phase 1 Components-Infrastructure The design is based on functionality, viability and sustainability and is conceptualized as a city within a city 5. Smart City • Investing USD 2.5M on a high tech smart city solutions based on smart governance, smart environment, smart mobility, smart billing, smart economy and smart living. • Provide ICT infrastructure that will integrate, city management services, utilities, retail, residential, security services, transport, health, education, sports and entertainment. 6. Building management • The development will install building management systems that will monitor; – metering and reporting of actual energy usage – Safety and Security monitoring – Precision metering electronics – Utility monitoring & management 15 Key Lessons Learnt From Two Rivers Development Lifecycle Key Lesson 1. Planning, feasibility & market Research Notes • • Two Rivers responds to a compelling real estate market need for high quality developments Research undertaken by market experts that include IPSOS Synovate, Fernridge, Knight frank. 2. Identification of anchor development & tenants • Early identification of the anchor development- a mixed used site with more than one possible anchor in phase 1 is ideal. 3. Recognition of the key differentiator • Early identification of the differentiator and consistent focus to further differentiate the destination 4. Development timing of support infrastructure • Infrastructure should come in early and should be provided by the master developer as it supports in-fill developments. 5. Commercial and legal structuring • Legal structuring of the development to allow for different aspects of the project to proceed independently 6. Key Stake holder management • Effective stakeholder management is key with all regulators to fast track the regulatory approval process 7. Access to key roads • Early identification of access points to the site and development of multiple access points. 16 Key Lessons Learnt From Two Rivers Development Lifecycle Key Lesson Notes 8. Project team capacity • Work with a design and construction team with capacity. 9. Funding • Need to have adequate equity capital to allow the project progress to a point where it can attract debt capital 10. Firming up on design • Lock in designs prior to commencing construction 11. Location • Identifying a location with an underlying value which includes proximity to a catchment area, access and views 17
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