By the numbers:
- Greenspan Mall, which is owned by ILAM Fahari I-REIT, grew its rental income by 14.6% to Sh222.4m for the year ended December 31, 2025.
- The growth was driven by improved occupancy rate, which improved from 86% to 93% in 2025 as well as contractual rent escalations as per agreed leases.
- The mall, which is anchored by Naivas and sub-anchored by China Square, reported a net profit of Sh305.6m after booking a fair value gain of Sh100m on the property to lift the mall’s valuation to Sh2.5B.
Plans to build residential units:
- The chairman of ICEA Lion Asset Management, Andrew Ndegwa, told ILAM Fahari I-REIT unitholders that, after evaluating multiple development options for the excess land at Greenspan Mall, the board had settled on residential units as the most viable use of the vacant land.
- The project is currently at Royal Institute of British Architects Plan of Works (RIBA)Stage 3, with several consultants appointed and having commenced work. Groundbreaking is expected in 2026, subject to receiving the necessary Board, Trustees and regulatory approvals.
- The project is currently undergoing a tender process to validate bill of quantities and construction programme estimates, after which it will be submitted—subject to Board approval—to the Trustee and relevant county authorities for final approvals ahead of groundbreaking.
- A business case for the brownfield development of a bespoke facility at Greenspan Mall, to be leased to a leading East African electronics retailer and distributor, has also been approved by the Board and Trustee. Project drawings have been submitted to Nairobi City County and are awaiting approval.
Other properties owned by ILAM Fahari I-REIT:
- 67 Gitanga Place, an office property acquired by ILAM Fahari I-REIT for Sh850m in 2018, reported an 87% drop in rental income to Sh2.2 million after occupancy fell from 100% to 14% following the exit of a key tenant upon lease expiry.
- Andrew Ndegwa told ILAM Fahari I-REIT unitholders that the property remained largely vacant during the year, with occupancy at just 14% in the second half, as the office market continued to grapple with oversupply.
Performance of ILAM Fahari I-REIT in 2025:
- The REIT reported a 34.8% drop in net profit to Sh245.8m for the year ended December 31, 2025, with distributable earnings per unit coming in at Sh0.81 per unit.
- The Board and REIT Trustee recommended a first and final distribution of Sh0.65 per unit, representing a payout ratio of 81% to be paid to unitholders not later than 30th April 2025.
