Jubilee Holdings #ticker:JUB has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.
The Nairobi Securities Exchange #ticker:NSE -listed firm will lease out part of its current address –Jubilee Insurance House on Wabera Street— which will also continue to house its agents and customer service operations.
“We bought the Coca-Cola building at a cost of Sh1.1 billion. We got a very good deal,” Jubilee Holdings chairman, Nizar Juma, told the Business Daily.
“We are adding one floor and also doing renovations. We expect to move in September.”
Besides the head office, other operating divisions that will migrate to the Upper Hill property include its fund management, life, and health businesses.
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.
The soft drinks giant at the time said it chose to migrate to a location that is closer to residential areas besides having a working space that is “more open and less formal”.
Jubilee says the expansion and renovation of the newly acquired property will enable it to accommodate its operations. The upgrade will feature the construction of an amphitheatre.
The three-storey complex is currently categorised as a Grade A office with 116,350 square feet of space and 130 parking bays. Other amenities are a sound-proof auditorium, gym, fitness studios, and a cafeteria. Only one acre is developed.
The transaction expands Jubilee’s investment in the real estate market. Through PDM Holdings Limited, the insurance group has interests in Nairobi’s IPS Building, Nation Centre, and Courtyard. among others.
Long-term real investors have benefited from both rental income and capital appreciation, with the latter source of returns dominating in the past two decades.Jubilee’s purchase of the property continues the trend of companies leaving Nairobi’s central business district to new head offices in Upper Hill and Westlands. Others that have made similar moves are Sanlam Kenya and the Nairobi Securities Exchange.The corporate migration has been partly linked to the need to acquire more modern offices, with most properties in the CBD built decades ago.Upper Hill and Westlands have become popular locations for corporate headquarters, hosting banks, insurers, and audit firms, among others.There is an increased preference for modern buildings that consume less electricity and have more […]
