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Discussion Starter · #1 ·
Pan Africa Insurance has announced plans to build a 20-storey office complex in Westlands, Nairobi, as it seeks to supplement income from its core business.

The Sh2.5 billion project, whose construction begins later this year, will be funded using Pan Africa’s cash reserves, said the firm’s CEO Tom Gitogo.

“We will use a third of the space and rent out the rest,” Mr Gitogo added.

The proposed office block that is tipped to be one of the tallest buildings along Waiyaki Way will see Pan Africa relocating from its Kenyatta Avenue headquarters and earn rental income from corporate tenants.

Westlands offers some of Kenya’s highest commercial rents, with office space going for between Sh100 and Sh120 per square foot – nearly double the cost of similar spaces in the Nairobi central business district.

Pan Africa, which owns Mae Ridge homes in Nairobi’s Runda estate, said it earned high returns from sale of property in the leafy suburb, which boosted its revenue for the year ended December 2013.



Insurance firms have lately ventured into real estate development, building high-end commercial properties, as they seek to cash in on high rental fees and capital appreciation.

Britam is, for instance, building a 31-storey office complex along Hospital Road in Upper Hill – Nairobi’s fastest growing commercial district.

The building, to be known as Britam Tower, will have 30,000 square metres of space for rent and will house the firm’s headquarters and accommodate corporate tenants. It is scheduled for completion in December 2015.

UAP Insurance is also building a 32-storey tower in Upper Hill that will serve as UAP headquarters, with surplus space for letting out to corporate tenants. The UAP Tower is estimated to cost Sh4 billion.

The regional insurer is also constructing a 15-floor office block in Juba, South Sudan. Dubbed Equatorial Towers, the upcoming building is tipped to be the tallest man-made structure in South Sudan on completion in August.

The Kenya Reinsurance Company has also announced plans to build a high-rise commercial building in Upper Hill at a provisional budget of Sh4 billion to cash in on the rising demand for office space in the area.
https://www.google.com/url?sa=t&rct...zYD4Bg&usg=AFQjCNEAzVlPlaI8pzaPu7SmASjFRiG4dw
 

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Pan Africa CEO Tom Gitongo was featured on Today's Business Daily copy and was saying the project groundbreaking ceremony would be this Early september.Despite a big drop in revenue earning half of the financial year,they will go on with their ambitious project.
 

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Discussion Starter · #3 ·
any renders yet?
 

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Not yet but since the construction will start next month am sure they have it!i hope its a master piece.I tried to look at their website but to no success
 

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Discussion Starter · #5 ·
Pan Africa to start building Sh2bn head office in September

South African majority-owned Pan Africa Insurance is set to kick off construction of the group’s Sh2 billion head office in September, the management said on Friday. The listed insurer said its new headquarters will be located in Westlands, Nairobi, and will be financed through accumulated cash.


The underwriter joins a host of firms opting to build own headquarters outside the central business district. “The approved drawings are for a modern office of about 19 floors (limited by current area plot ratios). We will occupy about three floors and rent out balance to other blue chips. Excavation should start in a month or so,” Pan Africa chief executive Tom Gitogo told the Business Daily.

Rent from the new office along Waiyaki Way would supplement other incomes, said the managing director of the company 55 per cent owned by Johannesburg-based Sanlam through Hubris.

“We will also continue to pursue our strategy of diversifying our distribution channels specifically both bancassurance and mobile telephony. The development of our new head office on Waiyaki Way in Westlands will commence in the first half of the year,” Pan Africa’s 2013 annual report earlier said.

Pan Africa reported a drop in profitability for the first half of the year and has said going forward it will also focus on improving efficiency in addition to new business lines.

Net profits dropped by 51 per cent to stand at Sh390.7 million from Sh800.18 million posted in the first half of 2013. The company attributed the drop to unrealised gains on equity investments in this half of the year.

READ: Scangroup profits up 151pc, Pan Africa Insurance down 42pc

Firms have been leaving the central district in droves due to heavy congestion that makes conducting business an uphill task. A report on Nairobi’s commercial property market by Mentor Management, a real estate management and development company, says rents in Westlands are amongst the highest in Nairobi due to high demand.

Mentor’s report said Grade A offices in Westlands can attract as much as $2 (Sh174) per square foot in rent, making it amongst the priciest node in the city.

“Gigiri has the highest asking rents in the market at $1.64/square foot/metre although there are only two new buildings in this node. Rents of up to $2.0/square foot/metre are now being recorded for the best office suites in Westlands,” said the report.

Britam and UAP are the other insurance companies that are constructing new group offices. Britam is putting up a 30-storey office block while UAP’s will be a 31-storey building. StanChart, Barclays and Equity banks are some of the financial firms that have moved to new headquarters outside the city.
http://www.businessdailyafrica.com/...ember/-/539552/2414424/-/106hrdi/-/index.html
 

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Discussion Starter · #6 ·
so they have downsized the height by one floor to 19, citing height restriction in westlands :bash:
they should have just gone to upperhill.
 

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He did not say they downsized.He said it is about 19 floors which is close to 20.He also said that the area plot ratio restricts the size.So the bigger the plot the taller the building.I know Upper Hill has more open space compared to Westands that is why they are taller
 

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Discussion Starter · #9 ·
He did not say they downsized.He said it is about 19 floors which is close to 20.He also said that the area plot ratio restricts the size.So the bigger the plot the taller the building.I know Upper Hill has more open space compared to Westands that is why they are taller
oh damn.
forgive me. english is my third language.
 

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Discussion Starter · #10 ·
Where exactly along Waiyaki Way is it located.Any idea?
will do more research into that.
atm, we have nothing so far apart from the article. not even renders. and their website doesn't help either in regard to the construction.
 

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He did not say they downsized.He said it is about 19 floors which is close to 20.He also said that the area plot ratio restricts the size.So the bigger the plot the taller the building.I know Upper Hill has more open space compared to Westands that is why they are taller
These are excuses in my opinion. I need to see the law about building heights and zones in Nairobi. For too long I've been told about these things but they seem mysteries to me, I need a source to demystify these fake theory.
 

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Yes that is a bit concerning.No renders about one month from groundbreaking.Which construction company?Lack of information does not bode well but a word from the CEO is reassuring
 

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These are excuses in my opinion. I need to see the law about building heights and zones in Nairobi. For too long I've been told about these things but they seem mysteries to me, I need a source to demystify these fake theory.
I would want to see the law as well but info is sometimes hard to come by in Nairobi.Brazil has laws on height for some reason New York never had which I think is the best way to go.Sometimes it may depend on the funds the investor has
 

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Maybe they went to westlands because of the infrastructure there is much better,look at how upperhill is grappling with road issues :eek:hno:
 

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Maybe they went to westlands because of the infrastructure there is much better,look at how upperhill is grappling with road issues :eek:hno:
I saw they were working on roads in Upper Hill.The roads in Westlands are not the best but better than Upper Hill.I lived along Muthithi Road about two or three years ago and it was horrible.Rough and full of potholes
 

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I saw they were working on roads in Upper Hill.The roads in Westlands are not the best but better than Upper Hill.I lived along Muthithi Road about two or three years ago and it was horrible.Rough and full of potholes
I agree,that Muthithi road is very chaotic!and it reminds me,you see at the entrance of Muthithi road,just opposite the Museaum,there is a tall building which has stalled,would you know what building is that?
 

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I saw they were working on roads in Upper Hill.The roads in Westlands are not the best but better than Upper Hill.I lived along Muthithi Road about two or three years ago and it was horrible.Rough and full of potholes
Does anybody know why there's a height restriction in westlands?
i don't know!and i haven't heard of any rule pertaing to height!even in upperhill it was the same story until Kidero decided to remove the law,it lead to downsizing of KCB and almost UAP which would have been 23 floors,also the proposed The One tower was made to 54 floors from 70.
 

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I agree,that Muthithi road is very chaotic!and it reminds me,you see at the entrance of Muthithi road,just opposite the Museaum,there is a tall building which has stalled,would you know what building is that?
I know that building.It has been under construction for about 4 years and it is around just six floors up to now.I have no idea which building it is or why construction keeps stalling
 
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