Centum RE’s drive to Create One-stop Shop for Real Estate Needs

• From Kenya to Africa: Centum’s Re-drive to create a one-stop shop for all your real estate needs

 Kenyan Real Estate Giant is creating value for money with luxury communities that meet the aspirational lifestyles of many providing housing solutions catering for affordable, mid-market, and high-end markets.

 The real estate landscape continues to witness a surge in housing demand year after year, driven by a growing population with evolving preferences and choices. Of particular note is the escalating demand for high-quality residential communities equipped with safety features and amenities conveniently located near transportation hubs.

Crucially, affordability remains a paramount consideration for consumers, encompassing overall occupancy costs. Centum Real Estate,is a Wholly owned Subsidiary of CENTUM Investment Company Plc,stands as the preeminent developer of mixed-use urban nodes in the East African region.

The firm underscores the significance of prioritizing consumer needs and preferences, particularly value for money, as imperative for sustainable success in real estate ventures.

Centum RE has prioritized the creation of the lowest cost location to live or do business in its real estate strategy, according to Managing Director Kenneth Mbae. He highlights the importance of understanding consumer needs in a competitive market.

“Consumers are concerned more about getting value for their money,” Mbae said, emphasizing the need for customer-focused approaches. He explained that Centum Re uses market research to predict future demand, trends, and home ownership preferences.

“Real estate is core to human life. We spend up to 90% of our time in real estate space real estate. So, you’re either in a building working, in your house, in a building shopping, or a gym, or in a building entertaining yourself.

Through meticulous market analysis and forward-thinking projections, Centum endeavors to anticipate and cater to evolving consumer demands over the next decade.

“Among the characteristics of this demand, is the entire lifestyle that is top of home owners / tenants list,”.

Mbae painted a vivid scenario where the current trend individual contemplating a residential move scrutinizes the entire occupancy cost (rent, power, water & other utilities)not only rental costs but also auxiliary expenses such as utilities and internet connectivity.

“Given a case scenario that a consumer asks self that if I move into a home, let’s say I’m renting, what is my cost of power? What is my cost of water? What am I spending on the internet? So, if you can give sustainable buildings, where if the consumer was spending Sh5,000 on power and water before, and now he is able to save 30%, then that is a win,” he notes.

He adds that the consumer would then actually save close to Sh6,000 per year, meaning he could be living in those houses one month free per year.

“This is what speaks to our value for money and wholistic lifestyle and so we are looking into more of that approach,” he notes.

Opportunities in the sector

Kenya’s real estate sector has been experiencing a surge, driven by urbanization and a growing population. As people migrate from rural areas to cities like Nairobi seeking economic opportunities, the demand for housing is skyrocketing. This presents a significant opportunity for developers and investors.

“It therefore means the housing is very important,” Mbae points out. “One of the opportunities we as a player often ride on is the government’s initiative to provide incentives to the sector,”

Mbae highlights Centum RE’s unique position to grow a a pan-African real estate business. This allows them to not only address real estate needs across the region but also eventually attract foreign direct investment.

“We can create jobs and uplift communities as we do business in various segments,” Mbae explains. “By supporting the entire value chain, we contribute significantly to the economies where we operate.”

Centum’s RE ambitions extend beyond its current footprint. They are actively planning for expansion in the coming five to ten years. Mbae emphasizes their data-driven approach.

“Our teams are conducting market studies and feasibility analyses to identify the right time and location for new projects.” This meticulous planning ensures that we address a compelling market need in underserved markets across Africa.

Centum RE Leverages Track Record for Growth

Centum isn’t just aiming to expand geographically, they’re also focused on leveraging their existing brand strengths to fuel growth.

“We have a strong track record,” says Managing Director Kenneth Mbae.“Our projects are visible across East Africa. From Kenya to Uganda, we have a verifiable and demonstrable track record.

Mbae emphasizes the importance of capitalizing on this established reputation. Centum plans to leverage their successful projects as a springboard for further growth.

But brand building goes beyond past achievements. Centum RE recognizes the need for continuous improvement. “We’re investing in resources to scale up the business,” Mbae explains. This includes exploring and adopting to modern construction technologies to shorten construction timelines

Driving sustainability;

Sustainability is a core principle guiding Centum RE’s  real estate development strategy, according to Managing Director Kenneth Mbae.

“We take a multifaceted approach to sustainability,” Mbae explains. “Our design teams are constantly challenged to push the boundaries to develop resource efficient buildings that achieve at least 30% savings on utilities. construction.”

This commitment is evident in Centum RE’s focus on renewable energy. Solar panels grace the rooftops of their projects, a testament to their dedication to sustainability

But their commitment goes beyond energy.Mbae highlights the importance of preserving green spaces. Centum actively plants trees within their developments, fostering a healthy ecosystem.

Furthermore, Mbae emphasizes adherence to rigorous sustainability standards. They collaborate with design teams to ensure buildings meet the highest local and international energy and resource efficiency benchmarks.

The firm has prioritized sustainability throughout the development process, it aims to minimize their environmental footprint and contribute to a greener future for Africa, a move that aligns with the growing demand for sustainable living spaces.

Pioneering Innovation

Innovation is a cornerstone of Centum RE ‘s approach to real estate development, as highlighted by Mbae.Their strategy focuses on continuous improvement across all stages of the development process.

Mbae emphasizes the importance of extensive research at the very beginning. This research delves into not only their own projects but also industry trends and emerging technologies used around the world. By staying ahead of the curve,Centum ensures their designs meet the evolving needs and preferences of modern residents.

Innovation extends beyond design. Centum actively seeks out new construction technologies from manufacturers and construction companies.This includes exploring advancements like formwork technology and precast concrete panels, which can streamline construction processes.

The MD stresses the importance of collaboration.Centum  RE fosters a culture where everyone contributes to the innovation process. By bringing together diverse perspectives, they can identify ways to improve efficiency, shorten construction timelines, and ultimately reduce costs.

Giving Back: Investing in Communities

Centum RE prioritizes social responsibility, aiming to make a positive impact in the communities where we do business. “We go beyond bricks and mortar,” explains Mr.Mbae. “We strive to uplift the communities where we operate.”

One of the cornerstones of Centum’s RE Corporate Social Responsibility (CSR) efforts is education. They understand the transformative power of education and sponsor scholarships for bright but underprivileged students to proceed with their high school education. over 400 students have benefitted from the scholarship program through access to quality secondary education, a path that would otherwise be out of reach.

Centum’ RE s commitment to education extends beyond scholarships. They actively invest in improving educational infrastructure. This includes upgrading existing schools, providing essential supplies like desks and classrooms, and equipping libraries with resources to enhance learning.

Investing in the youth is another key pillar of Centum RE ‘s CSR strategy, the firm has donated equipment like football kits, fostering a healthy and active lifestyle among youth.

That’s not all, they also support vocational training programs within the communities they develop in, as they seek to empower them to secure better employment opportunities, ultimately contributing to the economic well-being of the community as a whole.

Capitalizing on the Housing Boom

Centum RE is poised for significant growth, driven by a surging demand for housing across Sub-Saharan Africa. According to Mbae, their focus is on capitalizing on this opportunity.

“Our research indicates a staggering housing deficit exceeding 7 million units across Sub-Saharan Africa,” Mbae explains. This demand is fueled by a confluence of factors, including rapid population growth, accelerated urbanization, growing middle class, economic growth and increased government investment in infrastructure.

Kenya itself faces a shortage of over 2 million homes, highlighting the widespread need for development. Mbae emphasizes the universality of this challenge: “The housing gap exists in every town and city across the region. So whatever housing gap is in Nairobi, it’s easily the same one in Kampala, in Kinshasa, Dar- es -Salaam,Kigali and we have done our model that works  can be scaled up.

This presents a significant opportunity for the firm.”We’ve developed a successful housing model that can be replicated across borders,” Mbae says.This scalability positions them to effectively address the housing needs of various cities.

Mbae steers the company’s vision and growth, focusing on developing value for money luxury housing solutions catering to the affordable, mid-market and top end while creating Instagrammable communities across Africa.

“It’s exciting to be in a market with such immense potential, and Centum is well-equipped to address this critical need.I’m also excited about the possibilities, given that in business, the most difficult thing is to create a market. Our role is just to put together a solution that addresses the market gap which is an exciting space to be in as the director,”.

Centum RE ‘s Impact:

• Over 400 children have received full high school scholarships.
• Thousands of jobs have been created through construction and ongoing operations.
• A successful 3-billion-shilling bond issuance and retirement showcases our demonstrable track record and ability to attract real estate capital, deploy the capital accordingly and actualize the investment.
• Over 1,200 homes were handed over with home ownership supported through the flexible payment plans making home ownership a reality for more people.

The MD’s path to the top wasn’t a straight shot. “My Centum RE journey began in 2010 as an intern,” he revealed, “tackling everything from car park management to market research.” This experience together with Centum RE  investment in training, leadership development and mentorship to develop future leaders has enabled him to grow within the organization.

Mbae’s story is a powerful testament to Centum’s RE commitment to develop future leaders. His journey, from intern to Managing Director, exemplifies the opportunities available within the company.