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JUBILEE HOLDINGS
Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal.
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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My 2 cents wrote:Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal.  @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn! These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs. If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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VituVingiSana wrote:My 2 cents wrote:Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal. @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn! These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs. If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH. It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations. Those are post transaction costs which are neither here nor there. Transparency ni muhimu in investing. For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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VituVingiSana wrote:My 2 cents wrote:Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal. @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn! These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs. If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH. JHL intend to move their HQ to Upper Hill and rent out the CBD building Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal. @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn! These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs. If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH. It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations. Those are post transaction costs which are neither here nor there. Transparency ni muhimu in investing. For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee. Then what are these costs you are referring to that are NOT related to extensions, renovations or closing costs (legal, stamp duty, etc)? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:My 2 cents wrote:Ericsson wrote:My 2 cents wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:kmucheke wrote:Insurer Jubilee buys Coca-Cola office at Sh1.1bnQuote:Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September. Quote:The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington. Land experts, is this price right? Respect! I think KenyaRe claimed Upper Hill is 500mn/acre. Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features. They will probably lease the offices in CBD. With covid-19 and economic slowdown the price has dropped to around ksh.400mn Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn Check your calculation again,is it more or less than 1.1bn. Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee. Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn. VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase. Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported. It is such a good deal that even at say 1.5B, it is still a deal. @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn! These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs. If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH. JHL intend to move their HQ to Upper Hill and rent out the CBD building JHL, like other holding firms, may choose to charge commercial market rents to their subsidiaries. All in all buying the UH property was smart. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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