Britam #ticker:BRIT will spend Sh3.3 billion to develop 11 floors of fully furnished and serviced apartments in Kilimani, Nairobi targeting the business travellers, consultants and business executives.
The development will comprise 117 two-bedroom and 46 one-bedroom rental apartments located on a 1.6 acre-plot along Nyangumi Road, Kilimani area and is expected to take three years to complete.
The current market rate for serviced apartments in the area range between Sh12,000 to Sh20,000 for a two-bedroom unit and Sh8,000 to Sh12,000 for a one-bedroom unit a night according to the firm.
Britam Holdings Group managing director Benson Wairegi on Wednesday said the decision to venture into property and real-estate development is part of the group’s diversification strategy meant to reduce portfolio risk and exposure to the volatile stock exchange market.
“The market will need at least 1,000 serviced apartments in the next three years and Britam Properties will help in bridging this gap,” said Mr Wairegi during the ground breaking ceremony.
Britam noted real-estate investments are inflation beating and if carried in an efficient investment vehicle like a real-estate investment trust, they can offer a huge tax benefit.
The property is being developed by Britam Properties, a fully owned subsidiary of Britam Holdings Ltd. Upon completion of the apartments and the yet to completed Britam Tower in Upper Hill, real estate will account for between 10 to 15 per cent of its asset base.