NSSF to sell three prime assets in Nairobi to comply with 30pc rule

 

Anthony Omuya I Nation The two prime buildings that NSSF plans to sell — View Park Towers (left) and Hazina Towers — in Nairobi’s CBD. 

By MWANIKI WAHOME

 

In Summary

• Fund invites bids for purchase of View Park Towers and Hazina Towers, saying the move was demanded by the Retirement Benefits Authority

The National Social Security Fund intends to sell two of its prime properties — Hazina Towers and View Park Towers — located in Nairobi’s Central Business District.

The two buildings, located near the Uhuru Highway-University Way roundabout, are estimated at Sh3 billion and Sh1.4 billion, respectively.

In an advertisement in Thursday’s Daily Nation, the fund invited tenders from prospective buyers for three assets that include an undeveloped plot next to the Israel embassy in Nairobi’s prime property area of Upper Hill.

NSSF acting managing trustee Tom Odongo said the sale of the property was demanded by the Retirement Benefits Authority, in a bid to reduce the property portfolio of the fund to the required 30 per cent.

“We have to sell the property because we have a portfolio that is beyond the stipulated 30 per cent,” he said.

The fund’s current property portfolio stands at 36 per cent and the sale will enable it scale it down to 29 per cent.

“The National Social Security Fund invites sealed bids for sale of the property situated in the prime areas within the City of Nairobi,” the advertisement said in part.

The advertisement described the property as measuring at 203,000 square feet for View Park towers and 95,000 square feet for Hazina Towers.

The undeveloped plot is estimated at 1.993 acres.

“ The property value in that location is estimated at between Sh14,000 and Sh15,000 per square feet of the total lettable area,” said land expert Mwenda Makathimo.

According to sources at the fund, a similar advertisement was placed early in the year, but the response from potential buyers was not good enough, hence the readvertisement.

Bidders are expected to place tenders by May 29, after which they will be opened to reveal the winners.

The fund has in recent weeks been at the centre of controversy over its decision to settle past property disputes out of court to the tune of about Sh1.5 billion.

Sololo Outlets was paid Sh490 million, Mugoya Construction Sh342 million and Pan African Builders and Contractors Sh590 million in out-of-court settlements.

The settlements raised concerns, prompting the Public Investments Committee (PIC), the Efficiency and Monitory Unit (EMU) and the Ethics and Anti-Corruption Commission (EACC) to launch investigations.