Work on the mall will be funded by Housing Finance to the tune of Sh820 million with the co-owner Kiloran Development Group – an investment vehicle of British nationals – raising the balance of the cost.
Andrew Gartrell, managing partner of Kiloran said: “We are very happy to have commenced construction on Cedar Mall, Kiloran’s first project in Kenya. We expect phase one to open in September 2016.”
The shopping mall is expected host Chandarana Food Plus as its anchor tenant. Major national and international shops, restaurants, coffee shops and a food court will also be part of phase one construction.
Cedar Mall adds to a growing list of modern facilities that are being developed in strategic parts of the country to attract an expanding number of consumers with disposable income.
Nairobi has been the site of a mall construction boom, but the trend now seems to catch up with strategic towns away from the Kenyan capital including Nakuru, Naivasha, Kisumu, Meru and Eldoret.
According to Knight Frank, a global property consultancy, despite the rising number of large shopping malls in various parts of the country, demand for retail space is rapidly growing due to the flourishing mall culture.
The property consultancy reckons that investors have recently shown interest in retail space since it attracts higher rental yields than office, residential and industrial properties.