Sameer Africa has commenced the construction of a Kshs 260 mn warehouse along Mombasa Road, Kenya. The facility will offer a 10 MVA electrical power backed up by 66kV transmission lines, fibre connectivity, and ample utility water upon its completion which is set for mid 2024. This marks its fourth real estate project in the country, with the other properties being: Muthaiga Heights in Muthaiga, Sameer Business Park along Mombasa Road, and Rivaan Center in Westlands.

 

As a conglomerate, the firm has always primarily invested in the energy, transport, insurance, and real estate and construction sectors. Interestingly, the real estate market is its top income generator through rents in Kenya. A closer look at the company’s revenue results as of FY:2022 highlights that the property sector topped Sameer’s investments portfolio with a 274.8 mn income:

 

 Source: Sameer Africa

 

Notably, Sameer’s expansion comes at a time when industrial parks are a leading real estate sector in Kenya. This is mainly driven by e-commerce popularity influencing the need for storage spaces, infrastructure, and growing SME’s, which have all influenced the firm’s expansion drive. Additionally, Mombasa Road as a popular industrial area in Nairobi presents a favorable investment environment for the company. 

 

Over the last six months, Tatu City Limited and Chandaria Properties commenced the construction of the ‘The Link’, in Tatu City. Similarly, Zhende Medical Limited, announced plans to construct a supplies factory at Tatu City, while Gateway Real Estate (GREA) began the development of a new grade A warehouse facility for Orbit Products Africa Limited, in June 2023. We expect a similar trend to continue shaping the market’s performance.

 

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