Stanlib in deal for purchase of Sh850m office space in Nairobi
Stanlib Fahari I-Reit chief executive Kenneth Masika on Thursday told investors the unit has identified another suitable property and entered into a binding agreement for purchase at Sh850 million.
This is subject to Capital Markets Authority (CMA) and unit holders approvals. The new acquisition is a Grade A low rise office in Lavington’s Gitanga Road, from which the management expects a first-year income generation of about Sh73.8 million with an escalation of 15 per cent every two years.
“The Reit has also engaged in various activities to improve its portfolio by enhancing the tenant mix, attracting and retaining good quality tenants.
“To this end, the Reit has identified a cinema operator who is expected to start operations in quarter four of 2018 from its largest asset – Greenspan Mall. The Reit will incur just under Sh40 million to modify the identified unit to suit the intended user,” said Mr Masika.
READ: Stanlib Fahari to invest Sh1.8bn in new property by September
Stanlib Fahari I-Reit has recorded a 38.05 per cent increase in net profit to Sh171.12 million in 2017 from Sh106 million reported the previous year, thanks to growth in rental and related incomes.
But revenue declined by 19.8 per cent to Sh270.68 million from Sh337.57 million in 2016. The I-Reit, which was launched in the market in November 2015 closed the 12 months with a net asset value per unit of Sh20.26, slightly above its initial public offer price of Sh20.