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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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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 · #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 · #43 ·
Pan Africa to break ground for office tower

Insurance group Pan Africa is today expected to break ground for the construction of a 20-storey office complex in Nairobi’s Westlands district at a cost of Sh2.5 billion. The building will house the NSE-listed financial services group’s headquarters and will also be leased out to companies for rental income.



“On Monday October 6, Pan Africa Insurance Holdings will hold a ground breaking ceremony of a new head office building along Waiyaki way,” said the company in a Friday statement.
http://www.businessdailyafrica.com/...tower/-/539550/2476198/-/8l47i9z/-/index.html
 
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