A consortium of investors under the banner Buffalo Mall Development broke ground yesterday to give Naivasha town its first shopping mall, breaking away from the traditional Nairobi option.
The project is a joint venture between British firm Lloyd Capital Partners with 75 per cent stake, and the Delamere family holding the rest.
The mall is the first phase of a retail shopping centre, which is to gobble up nearly $30 million (Sh2.6 billion) by completion, over the next three to five years.
The total development sits on 45 acres on the Moi South Lake Road turn-off from the Nakuru-Nairobi highway, and will service the borderline of Nakuru and Nairobi counties.
LCP, which describes itself as a real estate investment and development company, said Buffalo Mall, sitting on 15 acres, will be built at a cost of $8 million (Sh693.6 million) and will be ready for use in 12 months.
It will avail 7,400 square metres of retail space that will cater for “a large-format supermarket”, with which it is in “advance negotiations” to be the anchor tenant, a commercial gallery of 30 shops and 195 parking spaces.
“At this stage, the evolution of Kenya’s retail market is with one large retail anchor. And since global chains have a standardised way of entering new markets, the mall provides a route for them to cover the whole market and not just Nairobi,” said Michael Lloyd, BMD’s chairman.
LCP said it will inject $3 million (Sh260.1 million) in equity, while mortgage lender Housing Finance will offer a senior debt of $5 million (Sh433.5 million) for the first phase.
“A lot of our initial investment for the new hub in Naivasha will go into infrastructure development. Subsequent phases will be a lot easier,” said Paul Phillips, development director.
The remaining 30 acres, LCP said, may be developed in a single phase or two depending on demand and refinement of the development plan. It will encompass ancillary space such as two fuel stations, a three-star hotel, drive-through fast-food restaurant, office space and apartments.
“The masterplan is being re-looked at and if there’s sufficient interest, we may develop some apartments and a variety of trade uses,” said Phillips.
Buffalo Mall is intended to deliver a focal retail and leisure destination, while catering for travellers. It will host a farmer’s market to enable local traders to benefit from the mall’s high footfall while availing choice.
“We intend to deliver a focal destination in itself, beyond the retail experience, considering that Naivasha is a hotspot for getaways,” said Simon Trappes-Lomax, commercial director.