Property fund ILAM Fahari is seeking to sell part of its assets to improve returns from its real estate portfolio. Fahari currently owns four properties -a semi-office or light industrial building, a shopping center (Greenspan), and an office building.
Selling some of the assets is part of the proposed restructuring of the funds and details that are yet to be disclosed. The fund’s annual general meeting has been delayed, awaiting the restructuring options which are before regulators. They will be disposing of non-core assets by the REIT manager with the approval of the Trustee within the property portfolio. The process is subject to, inter alia, regulatory and unit holders’ approval.
The company owns Greenspan Mall, Bay Holdings(semi office and a light industrial building), Highway House (an industrial building ), and 67 Gitanga Place(an office building)
According to the most valuable asset the mall tops at an asset value of Kes 2.2 billion, according to an assessment conducted in December. It is followed by 67 Gatanga which has a value worth Kes 841.4 million, Bay Holdings worth Kes 189.7millon and Highway House Kes 24.7 million.
The trustees of Fahari I-Reit have been looking for ways to boost returns on its assets that have been held down, among the factors, significant operating expenses. The fund that had been listed on the Nairobi Securities Exchange had more than doubled its net worth profit in the six months ended in June to Kes 86.1 million.
Fahari has onboarded Naivas supermarket as the replacement anchor tenant at its Greenspan Mall, raising rental income by 26 percent to Kes 171.7 million in the review period. Tuskys the previous anchor tenant at the property had some financial distress and was evicted for defaulting on rent.
