Garden City Eyes Sh226m Annual Rent as Space Runs out

Actis, a British private equity investor is set to bank Sh226 million in rent annually from the Garden City Business Park on Thika Road. Most of these profits are coming from its new are pre-existing tenants including CCI and Max International who are taking up six and a half floors and East African Breweries who have been tenants in the business park since 2019.

Due to the new tenancy by the CCI Group of companies, a nutrition supplement distributor, and a business process outsourcing provider, the occupancy has risen to 93 percent. This is almost 200,000 square feet of space to be left which compromises 60 percent of the park.

Ciru Okobi, Garden City’s commercial director said that the Covid-19 period restricted a lot of movement which in turn created a demand for spaces and properties that offered a mix of retail and residential feel in outer city locations. The commercial director says even as we resume back to normalcy there is still a rise in demand.

The business park is at 93 percent occupancy after closing major commercial leases. Their other tenant, EABL, was previously a tenant at Tusker Corporate Center, which opened in 1972 and sits adjacent to its beer factory.

The building was sold to Tembo Sacco for Sh675 million in a sale and leaseback deal. Tembo Sacco is a 2400- member savings and credit cooperative society consisting of its current and former employees.

Actis bought the piece of land that Garden City Business Park currently sits on from EABL at an undisclosed price. The firm plans to incorporate a healthcare facility, two hotels, and over 400 mid-market residential units, and leasing to CCI and Max and the brewer is just the beginning of that phase.

The project is said to cost a total of Sh61 billion ($540 million) as per the developer’s accounts.