The project dubbed “Railway City” will be constructed in a sprawling 63-hectare land owned by Kenya Railways (KR) that is located between Haile Sellasie Avenue, Uhuru Highway and Bunyara road.
Construction Business Review has learnt that successful bidders will lease the land on a renewable 60-year term and they will be required to commence development within a year of grant of lease.
The investors are required to complete the project over a maximum of six years from grant of the lease. They are also required to ensure that the golf course remains operational with minimal closures to undertake improvements.
The project will see the construction of a 5-star hotel, a modern 4-star hotel with state of the art conference facilities, exclusive cottages, an international quality 9-hole golf course and a huge shopping mall with sufficient parking lots.
The development is part of Kenya Railways’ measures to harness the potential of its large real estate portfolio in a bid to enhance long term financial sustainability of the state corporation.
Sources familiar with the matter say that the state corporation expects to earn about Sh1 billion annually in land leases.
Kenya Railways joins a growing list of institutions making a foray into the thriving real estate market. Others include the NSSF, NHC, Centum Investment, Britam, and CIC insurance.