Sanlam Kenya to offload landmark building as part of its property investments portfolio alignment strategy

Sanlam Kenya to offload landmark building as part of its property investments portfolio alignment strategy

BY EURIDICE NZIOKA,NAIROBI,5TH SEPT 2017-Non-Bank financial services provider Sanlam Kenya Plc, has retained a panel of local and international property management agents as it embarks on a global effort to attract tenants at its almost complete Sanlam Towers Property in Westlands.

The firm, has also retained an international consultancy to help in off-loading of the landmark Sanlam House, its current headquarters in the Central Business District at a competitive market price as the firm seeks to align its property investment’s portfolio.

At a Kshs 460 million reserve price, Jones Lang LaSalle (JLL) Kenya Limited, a fully owned subsidiary of JLL, a financial and professional services firm that specialises in commercial real estate and investment management services globally, has been exclusively retained by Sanlam Kenya, to secure a buyer for the iconic Sanlam House, along Nairobi’s Kenyatta Avenue.

Speaking when he confirmed the consultants’ appointments, Sanlam Kenya Group CEO, Mr. Mugo Kibati said that the firm has also retained Ms Knight Frank, Cushman & Wakefield and Axis Real Estate as the letting agents for the 18-storey Sanlam Towers building in Westlands.

“We are embarking on a global concerted effort to offload Sanlam House from our portfolio and while at it accelerating efforts to retain discerning tenants at Sanlam Towers,” Kibati said, adding that, “going by the current level of interest, I am optimistic that we shall be speedily signing up tenants at the Grade A complex in Westlands by the end of the year.”

Formerly known as Pan Africa Insurance Holdings, Sanlam Kenya has occupied the landmark Sanlam House for over six decades. The building along Kenyatta avenue was one of the pioneer business and office blocks in the city’s business district in the precolonial era.

According to a prospectus by JLL Kenya, Sanlam House is has a diverse tenant base, with approximately 42% of the property offering retail, while the balance is leased to office tenants. There are a wide range of tenants from financial, legal, and consulting, providing a diversified and balanced income stream.

The prospectus invites local and international investors to consider purchasing the 5-storey building with a potential to generate a more than Ksh33.7 million monthly rental income based on current market rates.

Within its property investments’ portfolio alignment strategy, Sanlam Kenya plans to vacate Sanlam House in coming months. The firm will be moving to the new 18 storey Sanlam Tower building in Westlands, Nairobi.

The ongoing construction works of the Ksh2.7 billion eco-friendly Sanlam Tower architectural masterpiece along Nairobi’s Waiyaki way are progressing on schedule and budget.

Jointly designed by Triad Architects and Gapp Architects, the new building features a 140,000 square feet of office space and will provide a new home for Sanlam Kenya, which will be moving to the new location in a few months.

Constructed by Seyani Brothers, with project management oversight by Acorn Management, the new Sanlam Tower spots a panoramic view of Nairobi city from the top floors with a generous natural lighting and reduced glare on its façade.

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