A Dubai-based investment firm is inviting wealthy Kenyan investors to buy into a residential property in Birmingham, England, in the latest sign of global property firms targeting East African money.

The offer

  • Promoter: Tokinvest, a Dubai-based firm, working with Baron & Cabot and API Global
  • Property: Great Hampton Street Works, Birmingham
  • Value: £8.55 million (about KES 1.5 billion)
  • Units: 29 apartments, described as fully occupied
  • Minimum investment: about US$27,000 (about KES 3.5 million)
  • Who can invest: professional and high-net-worth investors only

Investors would not own a flat outright. Instead, they would receive economic rights linked to the rental income from the apartments and to any proceeds from a future sale of the building.

The pitch

"We are seeing a growing awareness that African investors do not have to limit their wealth to their home markets," said Mark Pearson, Managing Director of Baron & Cabot. API Global founder and CEO Michael Leighton said high minimum amounts and complex structures have traditionally kept Kenyans out of overseas property, and that this offer aims to change that.

The firms will hold an investor briefing at the Hyatt Regency Nairobi on October 13, where they say expected returns, risks and eligibility will be explained. No projected returns have been published yet.

The risks

The promoters themselves list several risks:

  • Property prices can fall as well as rise.
  • Rental income can drop if tenants leave or rents fall.
  • Currency: returns are in British pounds, so changes in the pound-shilling exchange rate will affect what you get in shillings.
  • Exit: you may only get your money back when the property is sold, which could take years.

Before you invest

Fractional and tokenised property schemes are relatively new and are regulated differently in different countries. Before committing money, ask which regulator oversees the offer, read the full terms, understand how and when you can get your money out, and consider independent financial advice. Never invest money you cannot afford to lose.