The illustration of the apartments. [Photo/@BritamEA]
Britam has broken ground on a Sh3.3 billion serviced apartment project in the upmarket Kilimani area in Nairobi.
Located on a 1.6 acre piece of land along Nyangumi Road, the project will comprise 46 one bedroom and 117 two bedroom apartments designed to international standards.
The 11 floor fully furnished and serviced apartments target the savvy business travelers, consultants or business executives visiting or living in Kenya for an extended period of time.
They offer the convenience of a hotel but also the feel and flexibility of a home.
Some of the unique features to be incorporated in the property include a central laundry, swimming pool, secure surface parking, private restaurant, private gardens, steam/sauna, housekeeping services as well as Wi-Fi, open-plan lounge and dining room, air conditioning, satellite television, fully equipped kitchen and exquisite 5-star furnishing.
Set to be completed in 2019, the property will be developed by Britam Properties, a fully owned subsidiary of Britam Holdings Limited.
Dr. Benson Wairegi, Britam Holdings Group Managing Director said the investment into luxury serviced apartments was part of the company’s strategy to diversify its offering in the property market.
“The property market in Kenya is growing fast and as apart our business strategy, luxury serviced apartments are now in high demand. The market will need at least 1000 serviced apartments in the next three years and Britam Properties will help in bridging this gap,” he said.
Speaking during the groundbreaking for the houses, Dr Wairegi noted that the investment into the luxury apartments was driven by the market demand and the growth of business tourism in Kenya.
Britam’s decision to venture into property and real estate development is part of the groups diversification strategy meant to reduce portfolio risk and exposure to the volatile stock exchange market.
Additionally, real estate investments are inflation beating and if carried in an efficient investment vehicle like a real estate investment trust, they can offer a huge tax benefit.
To address the gap in the institutional trade serviced apartment market.
Before 2012, Britam had no real estate investments, but upon completion of the current development and the yet to be completed Britam Towers in Upper Hill, real estate will account for between 10-15% of their asset base.