The US Embassy in Nairobi has signed an eight-year deal to lease a gated estate for its workers in the Kenyan capital.
The 90-unit estate christened OBO Kenya Diplomatic Housing is currently under construction in the affluent Rosslyn neighborhood.
Business Daily reports that the estate is being developed by Gateway Real Estate Africa Ltd (GREA) at a cost of Sh5.5 billion and is set to be completed by the third quarter of this year.
Details of the leasing agreement were revealed by Mauritius-based Grit Real Estate Income Group in a prospectus issued ahead of its acquisition of a majority stake in GREA.
“The 90-unit diplomatic apartment and townhome community development marks GREA’s first development in Kenya and a second development in conjunction with US-based developer, Verdant Ventures,” said Grit.
“The development will consist of a combination of apartments and townhouses, and a clubhouse with gym, swimming pool and other amenities…(It will be) 100 percent leased to the United States of America for a term of eight years.”
The US Embassy will pay $4.724 million (Sh534 million) in rent in the first year, translating to at least Sh4.27 billion over the eight-year life of the lease.
The US Embassy will be the first foreign mission in the country to lease a gated estate for its members of staff.