CFC Stanbic Group, through its investment banking subsidiary, has announced plans to construct a Sh5 billion shopping mall in Nairobi. This announcement is perceived to be a move to cash in on Kenya’s flourishing property market.
Stanlib, formerly Stanbic Investment Management Services, will raise the funds by inviting investors to pool their resources with the promise of getting a return after five to seven years.
Stanlib regional director, James Muratha, said about the announcement that the Nairobi shopping mall is Stanlib’s first direct involvement with the real estate market and the mall will be developed in partnership with its South African partner.
Stanlib Asset Management had earlier set a target to raise $152.6mn (KSh13 billion) by November this year for acquiring land and beginning construction on five projects in Kenya and Nigeria.
In August, the firm announced it planned to raise $645.2(Ksh55 billion) by early 2014 to meet the fast growing demand for retail and commercial infrastructure in Africa.
Stanlib joins a growing number of high net worth investors venturing into the Kenyan property market to ride a housing boom fuelled by a burgeoning middle class with growing disposable incomes.
The Nairobi property market has become a very attractive investment ground for investors. A few months ago, London-based private equity fund, Actis, unveiled plans to build a Sh12.4 billion mixed-use development (Garden City) that will include a 50,000 square metres shopping mall on the newly completed Thika Superhighway.