Commercial Projects
UK Billionaires to Build Nairobi’s ‘Mall of the Future’
The Beacon will be the biggest shopping mall on the sideline of Nairobi CBD.
As shopping mall owners in Kenya continue to contend with store closures and falling rents, a group of British investors is planning to build a gargantuan shopping mall in Nairobi, a project that is mooted to be an architectural legacy for the city.
Christened The Beacon, the proposed development – scheduled for completion in 2020 – will be the biggest and most expensive mall on the sideline of the Nairobi central business district, according to its developers; aLL Design and Kiloran Development Group.
The 28,500 square metres mixed-use development located off the east of Uhuru Highway towards Bunyala Road roundabout promises to be grander than any other mall in the city.
It comprises 24,300 square metres of retail, food and beverage along with a 4,200 square metre, seven-storey Grade A office tower that overlooks the mall’s roof garden and bar.
“We were intrigued by Kiloran’s ideas for this mall in Nairobi and were pleased to be able to create an open-air mall with a focus on sustainability, fun and family which we believe to be key drivers on future international mall design,” says Marcos Rosello, co-founder of aLL Design, a globally acclaimed architectural outfit.
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aLL Design, which is renowned for exploring unconventional designs, expects The Beacon to become a retail leisure destination in its own right, as well as an excellent commercial hub.
“The building will be an architectural legacy for Nairobi that will serve to promote tourism,” the firm said, without disclosing costs and funding details.
Retail space glut
By all means, The Beacon is an architecturally ambitious facility with all the characteristics of the ‘mall of the future’: physical and digital capabilities to offer unique experiences for tenants and consumers alike.
It comes at a time when mall landlords are facing mounting pressure to cut rental prices to retain or lure new tenants.
Nairobi mall owners are facing the greatest pressure to slash their lease fees as more properties enter the market, according to a recent report by Mauritius-based multinational Grit Real Estate Income Group, which owns Naivasha Buffalo Mall.
In the past few years, the formal retail supply in Nairobi and Mombasa has grown rapidly to stand at 630,000 and 80,000 square metres respectively, according to Grit Real Estate.
Nairobi is expected to welcome 98,000 square metres of malls this year, further tilting the market in favour of renters.
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