East Africa retails sector has attracted international brands retails shops like The Foschini Group Carrefour and LC Waikiki. Betty Musyoki, Director of Portfolio Management and Client Services at Broll Kenya says despite slow growth of retail growth in the neighboring east African states Kenya continues to attract foreign investors.
She cite Citi Group report that says Kenya is the second most developed retails market in the sub-Saharan African and south Africa leads. “Apart from having a growing and stable economy, the biggest driver of retail in Kenya is the rapidly growing middle class that does not shy away from spending.” Betty added.
Betty Further said the real estate construction boom has witnessed introduction of modern retail space. This offers world class shopping experience and presents growth opportunities for local brands. It is also paving way for the entry of international brands such as Carrefour which is to open their first two outlets in Nairobi in the last quarter of 2015.
Broll is involved in a number of retail projects in East Africa. These projects include two Rivers, The Hub and garden City mall in Nairobi, as well as Market Shopping Centre in Kigali Rwanda and Penninsula Mall in Dar es Salaam in Tanzania.
The Hub is a mixed-use development measuring 31,000m2 and it opens in this year. Anchors include as Carrefour and Virgin Active. Broll is involved in the leasing and will manage Buffalo Mall that was opened in February this year with Tuskys as an anchor. The mall has a GLA of 8,000m2. The mall has an area of 8,000 meters square.
Garden City mall is situated along the Thika Superhighway is the mixed-use development under Broll leasing and management covering an area of 56,000 meter square. The mall is set to open on 28th may this year with Nakumatt, Game, Tile& carpet and Victoria Court.
Broll Kenya is now mandated to lease retail and office component of the development as well as manage the mall and the estate. Betty said. Two Rivers is a mixed-use development allocated along Limuru road covering an area of 94,500 meter with 65,000 meters set for retails shops. The remaining 25,000 meter square reserved for offices. Virgin Active is taking up to 4,500 for Gym.
The retail component opens for trade in October this year with Truworths, Mr.Price, LC Waikiki, The Foschini Group, Woolworths and KFC. Two Rivers along Limuru Road bordering the Northern Bypass is 14km from the CBD. It is close to the UN headquarters and a number of embassies. Its catchment area includes the neighboring affluent areas of Spring Runda and Gigiri.
“This is an important development because Nairobi is East Africa’s premium development destination and Two Rivers will provide a new state-of-the-art, sustainable and well managed mixed-use urban node set on 100 acres of prime land.” Betty said.
Betty Musyoki points out that the trend is growing trend in mixed-use developments in Kenya. Popularity stems from the fact that these developments offer retail, offices, residential, and entertainment all in one parcel of land. Mixed-use developments offer a sense of security, convenience and cater for the needs of the modern buyer or user. She added that from a retail perspective, residential and offices feed into retail and create a guaranteed footfall and customer base.
Broll is sponsor of the East Africa Property Investment (EAPI) Summit since its inception in 2014. It believes in the value, that an event of this nature provides for investors but also to real estate professionals.