Investment: Britam set to splash Sh3.5 billion on real estate

Britam Holdings Group Managing Director Benson Wairegi Photo:Standard

Diversified financial services group Britam will spend almost half of its Sh9 billion equity fund on new real estate projects.

Britam Holdings Group Managing Director Benson Wairegi said the firm would use Sh3.5 billion on various projects, being money raised this year as part of the firm’s 2016-2020 strategic plan.

The funds were raised in March after subscription of 224.1 million of its shares by the World Bank’s International Finance Corporation (IFC).

Last week, the company raised another Sh5.7 billion from AfricInvest, a private equity fund, which subscribed 360.8 million shares approved unanimously by the shareholders.

Mr Wairegi said in an interview over the years, Britam had acquired land in Nairobi’s Ngong area, Kilimani, Hurlingham and Kileleshwa, among others, where they plan to invest the cash as part of their revenue streams diversification plan.

“We will be working with our advisors to see which is the most viable area to invest in, although property is one of our major initiatives,” said Mr Wairegi.

Currently, the firm is putting up a Sh12 billion serviced apartments project in Nairobi’s upmarket suburb of Kileleshwa that Mr Wairegi projected would be complete by 2019. The firm is also expected to open its 32-storey Britam Towers in Upper Hill next year.