kisumu commercial property for sale

Kisumu Commercial House for Sale

A high-quality commercial property 50×100 situated along Obote road Kisumu. The property currently host Al-Husnain Motors, a car import and selling company. Its structurally sound and the building has just lastly 7years since its construction with both ground and first floors being used as a show room for vehicles Al-Husnain Motors are selling.

The Opportunity is huge since the structure of the building allows for construction of more floors. It can be used as go down, hardware, warehouse and more functions. This can be used as a warehouse for goods being supplied to western region or coming in from other countries like Uganda, Rwanda, Burundi, DRC,etc.

The Offer Price Ksh.135 Million.

There is no encumbrance on the title or charge. The lease had run from 1955 to date, so there is still some nearly 30yrs before lease renewal.

For more information please give us a call to arrange visit or further discussion.

The Offer Price Ksh.135 Million.

Please note that offer price is open to some negotiation. All negotiations will be handled by West Kenya Real Estate, the appointed Agent to handle the sale process.

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WHAT RETURN COME YOU EXPECT FROM THIS PROPERTY?

PROJECTED PROFIT AND LOSS BASED ON CURRENT MARKET RENTAL RATE

No of floors including basement= 4 (Basement, Ground, 1st and 2nd floors)

As currently being used:

Basement, Ground and 2nd floors are show rooms.

1 st floor is office or administration floor.

Estimated Monthly rent Ksh1.5Million

Estimated annual Rent income = Ksh1.5 MX 12 Months

= Ksh18M

Assume Rent is increased every 2yrs at the rate of 10%, what would be the total rent over a period of 10 yrs.?

PERIOD           CALCULATION                                TOTAL

1st 2yrs           Ksh.1.5MX24 months                     Ksh.36M

2nd 2yrs          ( 10% INCREASE) Ksh36M X 1.1                    Ksh.39.6M

3rd 2yrs          ( 10% INCREASE) 39.6X1.1                    Ksh.43.56M

4th 2yrs          ( 10% INCREASE) 43.56MX1.1                    Ksh.47.916M

5th 2yrs          ( 10% INCREASE) 47.916X1.1                    Ksh.52.7076M

After 10yrs, Total Rent                              KSH.219.7836M

YOU ONLY NEED 7YRS TO RECOVER YOUR INVESTMENT.

Suppose you add two floors, the projected total rent would be Ksh2.5 per month based on the current Market rate. What would be the rental income over a period of 10 years at an incremental rate of 10% every 2 yrs.?

PERIOD                   CALCULATION                            TOTAL

1st 2yrs                   Ksh.2.5MX24 months                            Ksh.60M

2nd 2yrs                   ( 10% INCREASE) Ksh60M X 1.1          Ksh.66M

3rd 2yrs                   ( 10% INCREASE) 66XM 1.1                   Ksh.72.6M

4th 2yrs                   ( 10% INCREASE) 72.6M X1.1                   Ksh.79.86M

5th 2yrs                   ( 10% INCREASE) 47.916M X1.1                 Ksh.87.846M

After 10yrs,                   Total Rent                                              KSH.366.226M

YOU ONLY NEED 6YRS TO RECOVER YOUR INVESTMENT.

LIST OF POSSIBLE CLIENTS FOR THIS PROPERTY

  • Car dealers, importers, etc
  • Manufacturers
  • Warehouse dealers
  • Hardware companies
  • Importers
  • Courier companies
  • Hotels
  • Etc

SEND US YOUR OFFER TODAY

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