Market News

Garden City eyes Sh226m rent as tenants fill space


A view of Garden City office blocks along Thika superhighway. PHOTO | POOL

British private equity investor Actis is set to bank Sh226 million ($2 million) annually in rent from the Garden City Business Park on Thika Road, which is nearly fully occupied after bagging two new corporate tenants.

The firm said CCI Group of companies, a business process outsourcing (BPO) provider, and nutrition supplements distributor Max International have taken up space at the development, raising occupancy to 93 percent.

CCI and Max International are taking up six-and-a-half floors and half-a-floor respectively at the business park.

This is equivalent to 60 percent of the park’s almost 200,000 square feet of lettable space.

“The Covid-19 period limited movement, creating demand for properties that are easily accessible and offer a mix of retail and residential offerings in an outer city location. As we return to normalcy, we are seeing this demand continue to grow,” said Garden City commercial director Ciru Okobi.

“Garden City Business Park is now at 93 percent occupancy following the closure of major commercial leases.”

East African Breweries Plc (EABL) #ticker:EABL is the other tenant at the business park, having taken up its space in November 2019.

The listed brewer was previously based at nearby Tusker Corporate Centre, which opened in 1972 and sits adjacent to its beer factory.

EABL sold the building in 2016 to Tembo Sacco, a 2,400-member savings and credit cooperative society made up of its current and former employees for Sh675 million in a sale and leaseback deal.

EABL is also the previous owner of the land that the Garden City development sits on, having sold it to Actis for an undisclosed amount.

The two buildings that have now been leased to the brewer, CCI and Max International are the first phase of the business park development that will eventually incorporate a healthcare facility, two hotels and over 400 mid-market residential units.

The developer said in 2018 that the project would cost a total of $540 million (Sh61 billion).

[email protected]