Supermarket chain Naivas has signed an agreement to be the anchor tenant at Nairobi’s Greenspan Mall until 2031, providing the property owner Ilam Fahari I-Reit with guaranteed income over the 10-year period.
The mall is being remodelled with an aim of leasing the remaining space to another tenant.
Tuskys’ lease was to end in 2023 but the retailer abandoned the space after its assets were seized and sold by the landlord to recover the unpaid rent.
Supermarket chain Naivas has signed an agreement to be the anchor tenant at Nairobi’s Greenspan Mall until 2031, providing the property owner Ilam Fahari I-Reit with guaranteed income over the 10-year period.
The property fund, which is listed on the Nairobi Securities Exchange, revealed the details of Naivas’ lease in its latest annual report and noted that the rental income started accruing in August last year.
Naivas launched operations at the mall in February, taking up a smaller space than the previous anchor tenant Tuskys which was evicted after defaulting on rent.
The mall is being remodelled with an aim of leasing the remaining space to another tenant.
Tuskys’ lease was to end in 2023 but the retailer abandoned the space after its assets were seized and sold by the landlord to recover the unpaid rent. The troubled retailer still owed Sh25.9 million after the eviction.
The property owner says it is pursuing the unpaid rent in an ongoing court case.
Naivas is among the fast-growing retailers that expanding across the country, replacing Tuskys and the collapsed Nakumatt Holdings in some locations.
The owner of the Greenspan Mall plans to invest Sh91.8 million to refurbish the mall. The works include repainting the façade and the interior, revamping the gardens, waterproofing the basement and overhauling the fire system.
Greenspan is a mixed-use development on 9.5 acres within the middle-income area of Nairobi’s Donholm estate.
The development comprises a retail centre with a gross lettable area of approximately 16,105 square metres with 1,000 parking spaces.
“Anchored by Naivas, it offers fast-food restaurants and bars, as well as various service-related tenants such as banks, wellness centres, entertainment centres, cinema, salons and small non-branded fashion and apparel component,” the property fund said in the report.
“The anchor tenant occupies 37 percent of the gross lettable area while the balance is occupied by services, food, clothing, healthcare and apparel.”
