Https://www.knightfrank.co.ke/properties/commercial/for-sale/junction-of-tom-mboya-street-hakati-road-nairobi-kenya/kecom263#:~:text=investment%20for%20sale%20in%20junction%20of%20tom%20mboya%20street%20%26%20hakati%20road%2c%20nairobi%2c%20kenya.

Nairobi

KES 485,000,000

Description

This is a mixed use six storey commercial building with a total lettable area measuring circa 29,150 sq ft.

The building was substantially renovated in 2016 and comprises retail spaces on the lower floors and offices on the upper floors. One of the prominent retailers in the building is Bata Shoe Company. Ancillary structures within the demised property includes a generator block and two ablution blocks. One passenger lift is in place to facilitate access to the upper floors and CCTV cameras have been installed and placed at vantage points on each floor and a security room is situated on the 1st floor.
Mains water supply is connected to the property and an underground water storage tank with a capacity of 70,000 liters has been installed. Additionally, another water storage tank on the roof top with a capacity of 36,000 liters has been installed.
Mains electricity services are connected to the property. This has been supplemented by 232 KVA backup generator and the drainage is to the mains sewer.

The property accommodation details are as follows:

Ground floor
• Entrance Lobby
• Lift Lobby
• Store below staircase
• 10 No. Shops
• Restaurant with fitted kitchen
• 2 No. Staircases to Landing
• Lift Lobby
• Garbage duct room
• Passageway
• Partitioned spaces
• Common Ladies cloakrooms
• Common Gents cloakroom

Second Floor
• 2 No. Staircases to Landing
• Lift Lobby
• Garbage duct room
• Passageway
• Partitioned spaces
• Common Ladies cloakroom
• Common Gents cloakroom

Third Floor
• 2 No. Staircases to Landing
• Lift Lobby
• Garbage duct room used as an office
• Wing A with 10 No. partitioned spaces and passageway leading to a fire escape
• Wing B with 6 No. partitioned spaces and passageway leading to a fire escape
• Common Ladies cloakroom
• Common Gents cloakroom

Fourth Floor
• 2 No. Staircases to Landing
• Lift Lobby
• Garbage duct room
• Wing A with 10 No. partitioned spaces and passageway leading to a fire escape
• Wing B with 6 No.partitioned spaces and passageway leading to a fire escape
• Common Ladies cloakroom
• Common Gents cloakroom

Fifth Floor
• 2 No. Staircases to Landing
• Lift Lobby
• Garbage duct room
• Passageway
• Partitioned spaces
• Common Ladies cloakroom
• Common Gents cloakroom

Investment Considerations

The key investment characteristics that highlight the capital value of Philadelphia House:

• Excellent location within Nairobi CBD.
• Strong income stream – Fully let.
• The property enjoys heavy foot traffic as it fronts Tom Mboya Street and Hakati Road and is close proximity to the bus station and the railway station.
• It is situated in an area with high demand for shops/ stalls and offices due to the heavy foot traffic.
• The building was recently refurbished and is therefore able to compete with other developments within the CBD.

Income Summary

The current built up area is circa 37,741 sq ft with a total lettable area of circa 29,150 sq ft. This comprises of shops and stalls on the lower floors and offices on the upper floors. The building is currently fully let.
• The current passing rents for the shops and offices leases and licenses is paid quarterly in advance, an equivalent of KES 44.5 Million per annum. The rents for both the leases and licenses are escalating at 5% annually.
This equates to a gross initial yield of circa 9.2%.
A full tenancy schedule can be provided on request.

Re-development Potential

After benefiting from the rental income from the existing leases and licenses to the tenants, due to the strategic location there