Days after the unfortunate Westgate terrorists attacks in Nairobi, Kenya, South African property investor, African Land Investments, has revealed plans to spend between $25 million and $100 million in Kenya’s real estate market with an eye on buying completed office blocks, warehouses and shopping malls.
In line with its multi-billion dollar sub-Sahara Africa expansion, African Land Investments’ CEO, Kevin Teeroovengadum said the firm is looking at offices in Nairobi’s Upper Hill and Westlands areas but finer details are expected by November.
Acquisition plans are also expected to gain traction in the first and second quarters of 2014.
However, the company will not take on any development risk but will only acquire completed properties.
The property investment company, which is presently seeking to be listed on the Johannesburg Stock Exchange (JSE) wants to grow its portfolio to at least $1 billion within the next four years with new shopping centers to be opened in Nigeria, Kenya, Uganda, Senegal and Mozambique.
Upon listing, the property investor will become the first JSE listed company that focuses exclusively on African real estate aside its home market, South Africa.
Sub-Saharan African nations like Nigeria, Ghana and Kenya are becoming the hub of retail activities as urbanization and the clamour for quality goods and services by the middle-class rises.
A figure released by terrace Africa consultant, Brett Abrahamse at the African Property Investment Summit in Sandton this month says more than 40 shopping centres, with a collective worth of about $3 billion, across 11 Sub-Saharan African countries are either under construction or will soon be completed before the end of the year.
Players buying into the African property market include Africa largest grocer- Shoprite, Hyprop Investments, Atterbury and Broll Property Group.
According to a report from Mckinsey, Africa consumer facing industries are expected to grow by $400 billion by 2020.