Britam will spend
Sh3.3 billion to develop 11 floors of fully furnished and serviced
apartments in Kilimani, Nairobi targeting the business travellers,
consultants and business executives.
The development
will comprise 117 two-bedroom and 46 one-bedroom rental apartments
located on a 1.6 acre-plot along Nyangumi Road, Kilimani area and is
expected to take three years to complete.
The current
market rate for serviced apartments in the area range between Sh12,000
to Sh20,000 for a two-bedroom unit and Sh8,000 to Sh12,000 for a
one-bedroom unit a night according to the firm.
Britam
Holdings Group managing director Benson Wairegi on Wednesday said the
decision to venture into property and real-estate development is part of
the group’s diversification strategy meant to reduce portfolio risk and
exposure to the volatile stock exchange market.
“The
market will need at least 1,000 serviced apartments in the next three
years and Britam Properties will help in bridging this gap,” said Mr
Wairegi during the ground breaking ceremony.
Britam
noted real-estate investments are inflation beating and if carried in an
efficient investment vehicle like a real-estate investment trust, they
can offer a huge tax benefit.
The property is being
developed by Britam Properties, a fully owned subsidiary of Britam
Holdings Ltd. Upon completion of the apartments and the yet to completed
Britam Tower in Upper Hill, real estate will account for between 10 to
15 per cent of its asset base.
No comments :
Post a Comment