Confidential investment memorandum · Edition 01
The Furnished Income Fund
A furniture-finance vehicle that converts Nairobi's furnished-rent premium into a tiered cash yield for investors — without buying a single apartment.
The opportunity
A premium few landlords capture
Nairobi rewards furnished apartments with a large rent premium, but most landlords never capture it — they lack the furniture, the systems and the appetite for short-let management.
In prime nodes — Westlands, Kilimani and the diplomatic Gigiri belt — furnished short-let units let for roughly KES 180,000–240,000 a month against KES 90,000–115,000 unfurnished. The Fund closes that gap: investors finance the furniture; the manager leases unfurnished, furnishes, and operates the unit as a premium serviced apartment, sharing the uplift through a clear, investor-first waterfall.
The model
How one unit makes money
Simple and repeatable. The Fund replicates the unit — returns scale linearly in KES 1M increments.
Lease unfurnished
Secure an unfurnished apartment at market rent (≈ KES 150,000/mo).
Furnish it
Fit out with KES 1,000,000 of investor capital — the productive asset.
Operate furnished
Run it as a serviced apartment at a ~90% premium.
Distribute
Share the surplus through the investor-first waterfall.
Distribution structure
The waterfall
Each unit's annual profit is distributed in a fixed order of priority. Investors are paid first — to a 15% preferred return — before the manager earns any performance share. Deliberately investor-first.
On a KES 1.0M ticket, base case: the investor receives KES 289,950 — a 29.0% net yield. The manager earns a 25% carry on the residual only (13.2% of profit).
| Tier | KES / unit / yr | To |
|---|---|---|
| Distributable profit | 354,600 | — |
| 1 · Administration (1.8%) | 18,000 | Fund |
| 2 · Preferred return (first 15%) | 150,000 | Investor |
| 3 · Residual split — 75% | 139,950 | Investor |
| 3 · Residual split — 25% | 46,650 | Manager |
| Investor receives | 289,950 | 29.0% |
Investor returns
From one unit to a fund
Size your exposure in KES 1.0M increments. Returns scale linearly with the number of units financed.
KES 25.0M raised
KES 7.25M to investors / yr
KES 50.0M raised
KES 14.50M to investors / yr
KES 100.0M raised
KES 29.00M to investors / yr
The 29.0% headline is an annual cash yield. Because furniture depreciates, lifetime IRR depends on how long the unit runs — the honest range is roughly 14–29%, strongest when the unit keeps operating beyond the payback period.
Read the full memorandum
Unit economics, the full waterfall, IRR scenarios, risks and terms — in one document.
This page is a summary for information only and does not constitute an offer, solicitation or investment advice. All figures are indicative base-case estimates prepared by Vitanova Land in June 2026; actual results vary with occupancy, rents, costs and furniture depreciation, and capital is at risk. Prospective investors should read the full memorandum and take independent professional advice before investing.