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Market News

Unfinished mall put on sale as market tightens

Development of malls outside Nairobi has gained
Development of malls outside Nairobi has gained traction due to vast parking areas. FILE PHOTO | NMG 

An incomplete mall complex on a prime one-acre land is on sale a kilometre from the Ruiru Eastern Bypass interchange as the retail space market tightens.

An advertisement by realtor Tysons Ltd has invited investors in the retail space saying the mall’s plan was still valid and available for completion.

“If buyers may choose to complete the mall, all architectural details will be provided upon request. It is strategically along Eastern Bypass with reasonable road frontage,” said the notice.

Eastern Bypass has witnessed development of multimillion-shilling commercial enterprises with the latest being Naivas that has announced plans to open its 58th store as well as an upcoming Pizza outlet owned by Chicken Inn, Pizza Inn, Bakers Inn and Creamy Inn owner, Simbisa brands.

Eastern Bypass is also home to fast rising Quickmart Supermarkets that recently merged with rival Tumaini, owned by Sokoni Retail Kenya, a special purpose company controlled by private equity firm Adenia Partners.

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The Ruiru-Eastern Bypass, set for dualling, is also a major artery to the ongoing city-with-a-city development Northlands City on an 11,000 acre plot owned by the Kenyatta family that will host 250,000 people.

The advert said interest parties should file their bids in writing by December 2.

Development of malls outside Nairobi has gained traction due to vast parking areas and accessibility of numerous services within the same facility from groceries, drugs, liquor, bakery, eateries, banking to laundry services.

According to realtor Cytonn Investments, tough economic times and increased completion of malls saw rental yield fall by 10.2 percent with occupancy rates in existing properties declining by 4.8 percent.

Its Quarter Three Retail Sector Report 2019 showed Westlands experienced the largest drop in performance with a 7.1 percent fall in rental charges to Sh203.60 per square feet in 2019 from last year’s Sh219.20 for the same space.

“The decline is mainly attributed to an increase in retail space supply of 0.8 million square feet within the past year with the addition of malls such as Waterfront, The Well, Mountain View and the expansion of Westgate and Sarit Centre,” reads the report.

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