Nairobi-based integrated financial services firm, British-American Investments Company (Britam), has ruled out any plan to raise cash from its shareholders to fund ongoing construction of its iconic 31-storey commercial housing project.

The skyscraper which will be highest in the country upon completion projected in 2015 will cost the publicly traded Company an estimated Sh4.3 billion (about $50.2 million).

The project intends to create 330,000 square feet of office and commercial rental space, and close to 970 parking bays.

Upon completion as planned, the tower will dwarf all the other buildings in the rapidly flourishing Upperhill area-Nairobi’s unofficial financial district.

Britam Group managing director Mr Benson Wairegi has said that all funds will be sourced internally, particularly from retained earnings with additional future funding gaps to be supported by debt market.

The company has made investment into property markets a key focus area in its medium term strategy to 2016 through its investment company, Britam Asset Managers Ltd, as it eyes fatter returns.

Over that period, it will be seeking to gradually increase its holding in alternative investment vehicles away from traditional unit trusts, fixed income and equity markets to 80 percent from present 30 per cent of its business portfolio.

New areas of increased focus include property development, offshore opportunities, cash management and private equity.

The shift is expected to help the company achieve its ambitious growth target of 35 percent a year in asset portfolio, said managing director for Britam Asset Managers, Mr Edwin Dande.

Dande said the shift has been prompted by attractive double-digit returns in those alternative investment areas.

The returns, he said, were more rewarding than depressed earnings of about 0.5, 2 and 4 percent annually from pension funds, insurance funds and unit trusts, respectively.

Britam’s foray into new investment instruments that started in 2010 appears to be gaining momentum.

In the year 2012, for example, they accounted for 30 percent of its income up from five per cent in 2011.

On  March 14, Britam announced it had roared back to profitability in 2012 after massive losses in 2011.

For the year period through December, its net profits soared to Sh2.52 billion ($26 million) from a loss of Sh 1.96 billion ($22.8 million) posted a year earlier, an equivalent of 228.72 percent growth.

The surge was largely driven by a 23.62 percent rise in gross revenue to Sh7.22 billion ($84 million).

“We lay emphasis on quality business and diligent underwriting to drive profitability,” Mr Wairegi told an investor briefing.

Operating expenses however continued rising, touching KSh2.29 billion ($26.7 million) pole which was 29.87 percent over 2011’s Sh1.76 billion ($20.5 million).

Group Finance Director Gladys Karuri explained operational costs were being driven by increased investment.

She said the expenses would maintain their momentum in 2013 but remained hopeful they will be covered by an equally growing revenue base.

“If we are going to grow value for our shareholders, we have to invest in innovation and marketing,” the CFO said. “You will see expenses grow in absolute numbers but not in cost to income ratio because it will be well covered by revenue.”

A dividend pay out of 25 cents has been proposed up from previous year’s 15 cents.

The move has seen its shares at Nairobi Securities Exchange consistently trade below its listing price of Ksh9, averaging KSh 8.50 on Thursday.

“We felt we should pay some dividend but re-invest the bulk of income to grow our business in line with our long term business strategy,” said has Wairegi.

Britam is the holding company of Britam Kenya Ltd, British-American Asset Managers Ltd, and Britam Insurance Company in Uganda and Africa’s youngest country,South Sudan.

Consolidating gains in Kenya’s business and regional expansion into Tanzania and Rwanda also ranks high on its 2013 strategy.