Markets & Finance

UAP in a race to open tallest Juba block this month

UAP

The UAP building under construction in Upper Hill, Nairobi. The firm says it is finishing construction of UAP Equatorial Tower, a 15-storey office block, in Juba. PHOTO | FILE

UAP Group says it will complete construction of the tallest building in South Sudan by the end of this month and has expressed optimism about the country’s future amid raging political conflict.

Chief executive Dominic Kiarie said the firm was finishing construction of UAP Equatoria Tower, a 15-storey office block with 8,000 square metres of lettable space in the capital Juba’s Hai Neem area.

The building, initially expected to open late last year but now expected to be ready for occupation in about a fortnight, is a fully air-conditioned property and features high-speed elevators.

This is the group’s second major development after UAP Heights Apartments in the volatile country whose conflict has hit local companies invested in Africa’s youngest state hard.

Mr Kiarie, however, said the company’s expectations are that normalcy would soon return ensuring occupancy levels were not affected.

“We believe the situation in South Sudan is temporary. There are efforts by international community to resolve the current challenges,” said Mr Kiarie. “The dynamism that Juba has to offer and its thriving economic future promises rapid growth and heightened expansion for various industries.”  

The over-the-counter-traded group’s other properties valued at Sh15 billion are spread across Kenya, Rwanda and Uganda.

Locally, UAP Tower under construction in the Upper Hill, Nairobi, is expected to open its doors by the end of the year. The 33-storey building will have a total of 350,000 square feet of office space to let.

READ: UAP eyes Sh4.3bn real estate plan in Kigali for growth

The group also has a $50 million (Sh4.85 billion) mixed development coming up in Kigali but the project is still at its infancy.

“We are still in the initial feasibility stage and our architects are reviewing the feasibility plans. Depending on the findings we will make the final decision as to what shall be developed on the prime property,” Mr Kiarie told the Business Daily.

CIC, Centum and Britam are some of the traded firms investing in multibillion real estate projects.

Property consultants say most investors are going for mixed developments because they easily attract buyers and tenants who want features such as convenience and security.

“There is a growing trend in mixed-use developments in Kenya and their popularity stems from the fact that these developments offer retail, residential, offices and entertainment all in one parcel of land,” said Broll portfolio management and client services director Betty Musyoki in the firm’s latest update.

“Mixed-use developments offer a sense of security, convenience and cater for the needs of the modern buyer or user Fusion Capital and Centum Investments are the other local firms putting up mixed-use developments in the region.

Fusion Capital is developing the $16.9 million (Sh1.6 billion) Kigali Heights which will have a total letable area of 10,829 square metres of commercial space and 4,641 square metres of retail space covering nine floors.

Centum plans to put up Pearl Marina, a lakeshore mixed development in Uganda that will be constructed on a 377 acre parcel.

The listed investments firm is set to finish construction of Two Rivers development that is coming up along the Northern Bypass in Runda, Nairobi, by the end of the year.