Shelter Afrique, Kenya-based pan-African housing and urban development financier, is in negotiations that could see the Chinese government buy a stake in the company to tap into the booming real estate sector in Africa, the firm said on Tuesday.

Should the deal sail through, it would be a further strengthening of Chinese links with the continent where the Asian economic giant has made big inroads in its bid to secure energy, minerals and food.

“Chinese involvement in Shelter Afrique’s work would build useful experience drawn from its management of what I believe is the biggest social housing scheme in the world with an estimated annual budget of $80 billion,” said Alassane Ba, the company’s managing director.

Ba was speaking at the debut on the Nairobi Stock Exchange of trade on a medium-term bond worth 2.5 billion shillings ($26 million) issued by Shelter Afrique, which is jointly owned by 42 African governments, the African Development Bank and African Re-Insurance Corporation.

The issue, the first tranche of a 3 billion shilling note, was fully subscribed despite tight liquidity, indicating a strong appetite by investors seeking to cash in on returns from real estate which has outpaced those from investments in stocks.

Ba said ten residential development projects worth about 9.4 billion shillings will be financed from the proceeds of the bond.

Demand for housing in east Africa’s biggest economy far outstrips supply. It is estimated that only 35,000 units are produced annually against a demand of 150,000 units.

The yield on the fixed rate component of the issue was 60 basis points above the two-year Treasury bond, while the floating rate component was set at 150 basis points above the 182-day Treasury bill yield.