MIP WEEKLY CONSTRUCTION INDUSTRIAL REPORT NO.12
Period: October 19 to 25, 2015
New tallest building in Kenya nearly ready
22/10/2015: The Standard, Home & Away, page 3
- Last week saw the topping up ceremony for the 30 floor Britam Towers.
- With NCC approving an average of 100,000 sqm, Dr Kidero who attended the ceremony, assures that the city the county government was moving fast to cope with the upcoming developments in terms of provisions of services to match the developments.
Nairobi now a regional shopping destination, global city to watch
22/10/2015:The Standard,Home & Away, page 2
- According to a global report by Knight Frank, with 1.8 million square feet of shopping malls coming into the market, Nairobi is fast becoming an East African shopping destination.
- Global cities: The 2016 Report, which was launched globally, last week also puts Nairobi on the list of five cities to watch. The others are Dubai(UAE), Kuala Lumpur (Malaysia), Bangkok(Thailand) and Moscow(Russia)
Land and house prices to rise despite the lure of high yielding treasury bills
22/10/2015: Business Daily, page 19
- According to Property consultant Hass Consult, on average land prices in Nairobi’s 18 suburbs has increased by 10.5% between September 2014 and September 2015.
- House prices however posted lower returns of 8.3% over the same period.
- The returns on land and houses in Nairobi and satellite towns are lower than the latest Treasury bill which has a 20% coupon rate.
- The high interest rates on treasury bills which have affected the stock market are also affecting the loan pricing.
Kakamega Housing Project
22/10/2015:Daily Nation, DN2 Magazine, page 4
- Housing Finance group signed a memorandum of understanding with Kakamega County Government to put up a 1000 units. Housing Finance will undertake the project on behalf of the county providing all requisite financing.
- HFC will in turn finance all mortgages while providing banking services to the county government staff.
Stanlib becomes the first company to issue a Real Estate Investment Trust
25/10/2015:Cytonn Weekly Report No. 40
- The Nairobi Securities Exchange became the 4th African country to launch a Real Estate Investment Trust (REIT) behind South Africa, Nigeria and Ghana.
- The Stanlib Fahari I-REIT public offer, to be issued at a minimum subscription of Ksh 20,000(1000 Units) and a nominal value of Ksh 20 each will close on November 12th.
- The offer will then undergo an allotment process, with subsequent listing units on the NSE.
- Stanlib Fahari I-REIT is expected to target properties with attractive rental income and capital gains, giving investors exposure to a reliable and growing return profile in the long- term.