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.
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?
Is it the casino?
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.
Is it the casino?
We are just being taken for a ride about building heights, I don't stability, etc what not and what have you!! How special is Kenya on earth, Look at the Asian countries people are building crazy tall buildings, hapa watu wanakuambia sijui ... It's maddening. I need to see the law to believe this hogwash kind of law exists. Technology has been used to circumvent natural circumstances, look at Japan! We are just lazy and don't like to do research so we use excuses.
We are just being taken for a ride about building heights, I don't stability, etc what not and what have you!! How special is Kenya on earth, Look at the Asian countries people are building crazy tall buildings, hapa watu wanakuambia sijui ... It's maddening. I need to see the law to believe this hogwash kind of law exists. Technology has been used to circumvent natural circumstances, look at Japan! We are just lazy and don't like to do research so we use excuses.
nope its not kamlesh,his project did not take off
There is actually a height restrictions thread on skyscrapercity but I am unable to copy the link right now.Japan has a restriction of 300m because of seismic activity,Cape Town has a restriction of 150m to preserve natural beauty,Berlin has a restriction of 100m to preserve culture etc.I don't know the reason for Westlands only plot area ratio
I know it looks so old the green nets look brown now
Shame because that's a really nice spot to put up a nice skyscraper.
I'm going out here on a limb but i think this building renders will be a blue glassed skyscraper not like I&m.
DC also has a height restriction (buildings cannot be taller than th Washington monument) I guess because of security reasons....but why would Westlands have height restrictions....its not that close to State House.
DC's height restriction has nothing to do with security, it is about symbol of power in the Capitol. No building can be taller than the Capitol Building. The Capitol is the symbol of American democracy and power. Ours is a strange theory, in fact, there is no law about these things. I would like this myth to be busted!! We found this myth, grew up with it and continue to believe, but it's time to bust or prove it. Bring it on so we can see it...
I'm going out here on a limb but i think this building renders will be a blue glassed skyscraper not like I&m.