NIC buys Sh550m Upper Hill land to build headquarters

Corporate News

NIC Bank branch. NIC has purchased 1.3 acres of land adjacent to its headquarters in Upper Hill for Sh550 million in preparation for the construction of an office block. FILE PHOTO |   NATION MEDIA GROUP

By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com

In Summary

• NIC Bank has purchased 1.3 acres of land adjacent to its headquarters in Upper Hill for Sh550 million in preparation for the construction of an office block.
• The bank plans to open several new outlets in coming months to cater for its growing retail and SME clients, hence the need to increase capacity at its main office.
• NIC joins a long list of blue-chip companies that have been investing heavily in Upper Hill properties in recent years, as more firms move their head offices from the central business district.

NIC Bank has purchased 1.3 acres of land adjacent to its headquarters in Upper Hill for Sh550 million in preparation for the construction of an office block.

The planned building is expected to be largely utilised by the bank for its operations, marking the latest trend where firms are investing billions of shillings in properties for own use and rental income.

The land purchase is disclosed in NIC’s latest annual report, which shows the lender will build the office block within the next two years as part of its three-year strategic initiatives.

The bank, which last year raised a total of Sh7.1 billion to support its expansion, did not disclose the value of the project but noted that it will not relocate its head office from Upper Hill.

“The bank is growing and there is need for additional office and parking space,” Rosalind Kimani-Gichuru, the bank’s marketing and communications director told the Business Daily Tuesday. “We do not yet have a specific date for commencement of construction and therefore we cannot give details of the project. We, however, plan to break ground within the next two years.”

NIC last year implemented a bonus issue of one share for every ten held and followed it up with a rights issue in which it created 42.6 million new shares in a transaction that raised Sh2.1 billion.

READ: NIC Bank gets more than double Sh2.1bn sought in cash call

It also issued a bond that raised Sh5 billion, bringing the total fundraising to Sh7.1 billion.

The company, which currently also has a presence in Tanzania and Uganda, said the proceeds from the cash call would be used to oversee an expansion strategy in the region.

The bank plans to open several new outlets in coming months to cater for its growing retail and SME clients, hence the need to increase capacity at its main office.

The Upper Hill land was purchased from a company called Codicote Limited whose owners were not revealed.

“In April 2014, the bank acquired a 100 per cent shareholding in Codicote for a consideration of Sh550 million,” the bank says in its 2014 annual report.

NIC, which owns subsidiaries NIC Securities, NIC Insurance Agents, NIC Bank Tanzania, NIC Leasing Limited Liability Partnership and NIC Bank Uganda, currently has approximately 700 employees.

Half of the staff currently work at the headquarters, with the upcoming building set to expand office space for the bank’s growing operations.

NIC joins a long list of blue-chip companies that have been investing heavily in Upper Hill properties in recent years, as more firms move their head offices from the central business district