Old Mutual Group, a pan African insurance company has put up its Nairobi Old Mutual Tower for sale, citing financial constraints. This has been fueled by the depreciating shilling and appreciating inflation rate. The decision is to be approved in the upcoming AGM scheduled for November 14th 2023. 

Interestingly, the iconic building is the firm’s largest investment property in East Africa, currently valued at Kshs 5.5 bn according to the group’s FY:2022 results. This will see the firm’s property investments value decrease by approximately 26%, from the current Kshs 19.2 bn. Old Mutual Tower is the third tallest building in the country, and has been serving as Kenya’s Old Mutual headquarters for the past seven years since its construction. Below is a further description of the commercial building:

Precise location: Upperhill Road, Upperhill District – Nairobi, Kenya

Grade: A

Building Size: 29,000 m2

Land size: 2.15 Acres

No. of floors: 33

No. of parking spaces: 824

Parking ratio: 1:300

Estimated annual yield: 7%

Developer: Old Mutual Group

Architect: Triad Architects

Construction completion year: 2016

Source: Estate Intel

 

Overall, Upperhill as a prominent commercial office market has witnessed a decline in rents by approximately 2.3% over the past five years owing to a general oversupply of office space. This has also consequently caused a decline in development activities and an overall constraint in the growth of land prices in the area.

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