Greenspan Mall owner ILAM Fahari Real Estate Investment Trust (Reit) has completed the sale of one of its properties in Nairobi’s Industrial Area, Bay Holdings, as part of a strategy to dispose of non-core assets.
ICEA Lion Asset Management Limited, the Reit manager, revealed the sale of the property with a book value of Sh160 million at the end of June, but did not disclose the transaction’s closing price.
“We have completed the sale of the property and are now in the process of transferring the property to the new owners. We indicated previously that we would be disposing of properties in the market in line with our strategy,” ICEA Lion Asset Management Limited chief executive officer Einstein Kihanda said in an iterview.
The property, which is located at the junction of Enterprise Road and Bamburi Road in Industrial Area, was acquired in June 2016 at a cost of Sh216.1 million.
The asset, featuring 2,556 square metres (33,265 square feet) of gross leasable area (GLA) with a covered area for parking, was fully leased out at the end of last year to three tenants- Imperial Bank, Packard Limited and Mat-Han Equipment.
ICEA Lion Asset Management made a strategic review of the Reit in 2021 and proposed the disposal of non-core assets as part of the strategy.
The Reit manager put one of its properties, Highway House — a three-storey industrial building located on Pokomo Road, up for sale last year with with an asking price of Sh45.1 million, a premium to the last valuation of Sh30 million. The sale price was, however, a loss compared to the Sh108.7 million acquisition price in June of 2016.
The sale of Bay Holdings leaves the Reit with two properties valued at Sh2.9 billion —Greenspan Mall in Nairobi’s Donholm, which houses various retail businesses including a supermarket and apparel stores, and Starling Park Properties (67 Gitanga Place).
Located on Gitanga Road in Lavington, Starling Park Properties covers an area of 0.2830 hectares and was acquired in May 2018 for Sh850 million.
ICEA Lion Asset Management valued Greenspan Mall and Starling Park Properties at Sh2.2 billion and Sh579.1 million respectively at the end of last year.
