Our business model however evolved with time to include developing apartments and town houses in areas where there is high rental yield, through the use of a low risk finance strategy, whereby part of the capital is raised through social Capital as equity as opposed to debt.
This strategy reduces the cumulative cost of a specific housing unit, this is mostly because it eliminates the hefty interest cost that ordinarily would be transferred to the end buyer by the developer in where a debt model is employed. Heri homes has experienced phenomenal success mostly attributable to this unique housing model.
The company also ensures that it constructs quality and affordable housing units in attractive locations that have high rental yield. In addition to real estate investments, the company has also invested portions of its assets in the purchase of land in strategic areas for resale.
We are currently developing housing units along Kikuyu road(3 Projects), Kitisuru (2 projects) and Athi River (Daystar)(1 project) using the equity model as described above. The rest of the capital is raised through presales of housing units.