We have walked the investment journey for 10 years now and in doing so, we have grown, not by chance but by taking deliberate steps while working together towards specific goals. True strength comes through continuous effort as well as struggle and understanding the direction we are moving, the legacy and impact of our footprints. We take this profound moment to say thank you for how deep your engagement with us goes and how important it has been over the years.
Quantum of Real Estate
In the decade in business, we have bought property in excess of KES5.5b, transforming the lives of many Kenyans. These projects were once called home for years, and when it was finally time to let go for one reason or another, we have been the preferred partner over and over again, bettering our vendors’ lives even just by association with the brand. We have helped families in distress, opened Kenya to Kenyans, and schooled children. We have played an important role in a great number of families across Kenya.
Over 2800 titles have been issued to individual buyers of the 129 projects we have sold over the years, including 4 housing projects. We acknowledge the risks that come with the real estate in particular, and with every other business. As we navigate the investment journey, we have had our fair share of challenges, some of which have persisted. To progress, we are picking lessons and progressively working to resolve the noted challenges and to avoid repeats. With the Juja titles, for example, we are on the tail end of the closing and hopefully before the clock ticks 00.01 in December 31st 2019, all our buyers will have their titles. What joy this will bring to us!
We have provided enablement of an environment for wealth creation and made the process of property acquisition seamless to our customers. We have also enabled families to own homes with over 360 housing units sold over the years, as well as speculative land products, which have been mostly used for capital gains and we have created communities in places where there were none.
Our intention has been to find affordable investment options, and we have accomplished exactly that. We carefully analysed the market, then acquired and sold products within the range. This, in fact, has created a trend where our competition looks out for our investment locations and then acquires property next to us, down to brand names. They say imitation is the sincerest form of flattery, we do take note. These actions make it clear that we are market leaders, that we are the firm to be watched and so we take the position with so much confidence a
Goals of Investments
There are 2 ways an investor makes money: through capital gains and earning dividends. Over the years, we have given back to you in dividends totalling KES.2b. We strongly believe in the value we have created, and the impact we have had over the years. Over the past 4 years, we have had a decline in the percentage of our rebates pay-out, however, we have maintained a leading position in the market and the value of the shares has increased by over 400% since inception. The rebates pay-out have equally increased since inception. We opened shop in 2009 with KES 700k pay-out, and last year, 2018, our rebates stood at KES. 375m. The all high inflation rates of 7.9% in 2017 has translated to slow uptake of real estate products, with it decreasing to 4.8% in 2018 and now 5% in 2019. As an economy, we are yet to stabilize in order to start reaping well from our key industry. According to a September 2019 IMF report looking ahead, Kenya’s GDP is expected to rise to 5.9% in 2020, and this is expected to double by 2024. The key driver for this growth is the ongoing investment being put in place to support the implementation of the government’s big 4 agenda.
We are working on diversifying our portfolio bearing in mind the current property state in the country that will allow us to continue giving attractive returns. These include private equity and joint ventures in different sectors like education, entertainment, agriculture and health care. We are making great headway and we will soon be closing on some.
With 200 shy of reaching 5000 members, one thing is very clear: you, our members are the building blocks that SIC relies on. Noticeably, 51% of our members are women, and we could not be more proud! In addition, we are close to 50% mark in gender equality, as an organisation and we cannot assert enough, how important this is. We are proud that we are creating a generation of strong financially literate and independent women, who are clear on their wealth creation path and are brave enough to pursue it.
We are very intrigued by your thoughts of how far we have come as a family and for this reason, we will be looking forward to engaging a few of you, by clicking on this link and filling out the form with details on availability for a testimonial video. In addition, if we get 20+ 1 forms, we will upload all the videos on the website, as recorded. We are keen to understand what your opinion of SIC has been for the past 10 years and your recommendation for a better tomorrow.
We welcome comments on this bulletin, which will guide us on items you would like covered in the next bulletin and this can be shared via this link.
God bless you, God bless SIC