Warehouse For Sale In Mombasa Road, Athi River.
- The warehouses are located in a prime road front within Oasis Business Park. Oasis Business Park is a modern warehouse development consisting of 28 (Twenty Eight) godowns adjacent to Mombasa Road approximately 500metres from the Athi River Junction. The subject warehouses are identifiable as No’s 13 and 14 within the larger development each measuring 9,027 sq.ft across ground and mezzanine levels totalling 18,054 sq.ft. Both units are owner occupied by Davis & Shirtliff Limited and being utilised for their storage.
The warehouses enjoys the benefit of 6 parking bays and each warehouse has a ladies, gents’ washrooms on ground floor and connections to the mains water, electricity and sewer. Other amenities that are enjoyed in common with the owners or occupiers of the complex include a generator house, electric fence running around the perimeter of the premises, 24 hours manned security including a gatehouse at the main gate. This provides an investor with good infrastructure to allow them to achieve maximum returns on their investment.
The key investment characteristics that highlight the capital value of the warehouses are:
The sale and lease back option: the current owner (Davis & Shirtliff Limited) would prefer to sell then lease back the warehouses from the incoming buyer for a term of 2 years. The proposed rental rate for the lease back is at Kshs 35 per sq.ft for the two warehouses measuring 18,054 sq.ft lettable which translates to a total passing rent of Kshs 7,582,680 per annum. In addition, the rent would be subject to an annual escalation of 7.5%. The proposed rental and escalation rates are within the current market achieved rates.
Davis & Shirtliff Limited is a reputable company that was founded in 1946 and has been established in East African region for a while and therefore it offers a strong covenant.
The option to acquire with vacant possession: an incoming buyer has the option to acquire the warehouses with vacant possession for their own use (owner occupier) or find a long term tenant.The warehouses are situated in an excellent location along Mombasa Road which is considered as one of the desirable industrial locations in Nairobi as it offers a quick and easy access to the numerous business in Athi River and Industrial areas as well as easy access to the Southern Bypass and JKIA.