Mauritian property developer Grit Real Estate Income Group is building two hospitals in Kenya as part of its expansion plans, underlining the private sector’s increased investment in the healthcare space.
Through its unit Gateway Real Estate Africa, the multinational plans to build WTC Hospital Phase 2 and Redhill Hospital, which are part of a series of its healthcare investments in Africa expected to cost more than $350 million (Sh53.6 billion) combined.
“The pipeline developments in Kenya are still at a very early stage and it will be premature at this stage to put a development timeline or costs to it,” Grit told the Business Daily.
The company added that the hospitals would be leased and operated by suitably qualified and experienced service providers who will provide the technical equipment and staff.
This means that Grit’s role will be limited to a landlord, a model it has used in other markets.
The upcoming hospitals will expand Grit’s interests in the country, which include Buffalo Mall in Naivasha, the American embassy’s gated estate in Nairobi, Orbit Africa manufacturing facilities and a contact centre in Tatu City.
The hospital will sit next to the Grade A office block at the business park near the Ngong Race Course in Nairobi.
The hospitals to be developed by Grit are among the latest by private sector investors who see opportunity in the country’s growing population and a sizable middle class.
The founders of I&M Group, for instance, are set to build a Sh3.24 billion hospital on Ngong Road’s Nairobi Business Park, which they acquired last year for more than Sh2 billion.
Disclosures in an environmental and social impact assessment study commissioned by the National Environment Management Authority (Nema) on the project show that the facility to be known as the World Trade Centre Hospital, will have a capacity of 150 beds.
The facility will continue a trend of healthcare providers setting up closer to their target populations as they seek a larger share of the growing healthcare spending from the middle class.
AAR Group, for instance, recently set up a Sh3.5 billion, 140-bed facility along Kiambu Road, which was funded by partners including the World Bank Group, International Finance Corporation, International Fund for Health in Africa and Swedfund.