ILAM Fahari Real Estate Investment Trust (Reit), the owner of Greenspan Mall, has finalized the sale of one of its properties located in Nairobi’s Industrial Area, known as Bay Holdings.
This transaction is part of a broader strategy aimed at divesting non-core assets.
ICEA Lion Asset Management Limited, the manager of the Reit, announced that the property had a book value of Ksh 160 million as of the end of June; however, the specific closing price of the transaction has not been made public.
“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 CEO Einstein Kihanda said.
The property situated at the intersection of Enterprise Road and Bamburi Road in the Industrial Area was purchased in June 2016 for Ksh 216.1 million.
This asset encompasses a gross leasable area (GLA) of 2,556 square meters (33,265 square feet) and includes a designated parking area.
By the end of the previous year, the property was fully leased to three tenants: Imperial Bank, Packard Limited, and Mat-Han Equipment.
In 2021, ICEA Lion Asset Management conducted a strategic review of the Real Estate Investment Trust (Reit) and recommended the divestiture of non-core assets as part of its strategy.
Subsequently, the Reit manager listed one of its properties, Highway House—a three-storey industrial building located on Pokomo Road—for sale last year, with an asking price of Ksh 45.1 million, which represented a premium over the last valuation of Ksh 30 million.
However, this sale price reflected a loss compared to the acquisition cost of Ksh 108.7 million in June 2016.
Following the sale of Bay Holdings, the Reit now retains two properties valued at Ksh 2.9 billion: Greenspan Mall and Starling Park Properties located at 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 Ksh 850 million.
ICEA Lion Asset Management valued Greenspan Mall and Starling Park Properties at Ksh 2.2 billion and Ksh 579.1 million respectively at the end of last year.
