Nakumatt Supermarket collapse cut Car & General #ticker:C&G rental income by 86.3 percent to Sh53 million last year as the retailer vacated the premises on Uhuru Highway in Nairobi.
Car & General discloses in the latest annual report covering the year to September 2019 that the rental income dropped from Sh98.86 million earned in the previous year.
This comes at a time the firm’s net profit fell by 19 percent to Sh182 million.
Nakumatt was the anchor tenant in the Car & General-owned Nairobi Mega building for 27 years but shut on mid-October 2018.
“The operation earned less rent this year given the exit of Nakumatt and the redevelopment of Nairobi Mega. Our rental incomes will increase substantially this financial year once Carrefour opens in early 2020,” says chairman Nicholas Ng’ang’a.
Carrefour already has branches in Village Market, Galleria, Sarit Centre, Junction Mall, Thika Road Mall, Two Rivers Mall and the Hub.