Sameer Africa is set to launch a real estate division to develop commercial property in an effort to diversify from its core business, which has recorded a sharp decline.
“To cushion the group’s profitability against the volatility of its tyre business, the board is pursuing strategies of unlocking the group’s property potential and diversifying the revenue base,” the firm said in its latest annual report.
Among the planned projects are a modern office block in Nairobi’s Westlands and a shopping mall and hotel on Mombasa Road.
The company also plans to build more warehouses for leasing. It is finalising plans for the construction of the 15,000 square metre mall on Enterprise Road at its factory premises in Nairobi’s Industrial Area.
Sameer chief executive Allan Walmsley said the mall and warehouses are priority projects expected to be build from next year.
“We will form a joint venture to build the mall where our contribution will be land,” said Mr Walmsley in an interview. “We will build the warehouses ourselves using borrowed funds,” he said, adding that the cost of the projects will emerge after final studies have been adopted.