Housing Finance, a mortgage finance provider, plans to sell the Rehani House building, its headquarters in Nairobi by the end of 2022.
Rehani House, a 13-storey high-rise building located at the junction of Kenyatta Avenue and Koinange Street in Nairobi, has been HF’s headquarters for years.
“The sale of Rehani House building by December 2022 will ensure compliance with investment in buildings to core capital and would also result in a one-off gain,” says HF in the annual report.
In its Q1’2022 Financial Results, HF Group had total loan obligations worth Kshs 5.0 billion. Moreover, HF Group aims at restructuring its business in order to comply with the regulatory requirement on fixed asset investments that should not exceed 20.0% of core capital.
As at FY’2021, Housing Finance Group’s investments in land and buildings as a percentage of core capital came in at 52.0%, which is 32.0% points above the regulatory requirement.
Upon the sale of the building, the financial institution will therefore shift to become a rent payer in the same building, after having been the owner for 44 years.
HF Group is expected to benefit from the affordable rental rates in Nairobi CBD compared to other regions within the Nairobi Metropolitan Area. As per Cytonn Q1’2022 Markets Review, Nairobi CBD recorded rental rates of Kshs 82 per SQFT, 12.8% lower than the market average of Kshs 94 per SQFT in the period under review.
The Group is listed on the Nairobi Securities Exchange (NSE) and has four operational subsidiaries which include HFC Limited, HF Development and Investment Limited, First Permanent (East Africa) Limited, HF Insurance Agency Limited and HF Foundation Limited.