Commercial properties company the Momentum African Real Estate Fund and South Africa’s Eris Property are developing a serviced apartment complex in the Runda neighbourhood dubbed Somerset Rosslyn Nairobi.
The property, expected to be opened on December 31, 2023, will be managed by Singaporean real estate firm Ascott.
“Somerset Rosslyn Nairobi offers 150 units of spacious serviced apartments, focusing on exclusive global living through a range of comprehensive lifestyle amenities,” said Ascott Limited on its website.
“The locality is home to significant establishments, and is a 30-minute drive from the Jomo Kenyatta International Airport in Nairobi,” the hospitality firm added, noting that the property will target business and leisure travellers.
Somerset is Ascott’s hospitality brand and the upcoming property will add to its franchise in Kilimani –Somerset Westview Nairobi.
The Kilimani property has one and two-bedroom apartments currently sold at Sh10,946 and Sh14,876 per night.
Serviced apartments are offered for long or short-term bookings. They provide facilities just like traditional hotels but have more space, convenience and privacy just like a home.
Investors have been drawn to the serviced apartments business, with such properties estimated at more than 6,000 in Nairobi.
Eris is a South African property development, investment and services group which provides a range of commercial property skills in the South African and sub-Saharan African markets.
Momentum African Real Estate Fund is a joint venture between Eris and Momentum Global Investment Management of London.
Kenya’s hospitality sector has attracted global capital despite pandemic woes as the sector was the worst hit due to travel restrictions.
Some top hotels, including Hilton, InterContinental, and Laico Regency in Nairobi’s city centre, stopped operations amid the Covid-19 economic fallout. Some hotels changed hands.
The industry has seen some prominent transactions that have taken place in the market over the past three years.
They include Actis’ acquisition of City Lodge Hotels, Kasada Hospitality’s acquisition of Crowne Plaza Hotel and The Fairmont Norfolk and Fairmont Mara Safari Club sale among others. Investors buying now are betting on the long-term growth potential of the sector.
Private equity firm Actis, for instance, bought three hotels in Nairobi and another property in Dar es Salaam from South Africa’s City Lodge which made the deal to cut its losses.
Actis bought the properties, including Nairobi’s Fairview Hotel, Town Lodge Upper Hill and City Lodge Hotel at Two Rivers Mall at a cost of Sh3.3 billion.
