Commercial Projects
Cytonn Shelves Sh20bn Kilimani Tower Project
The company is accepting bids for the 4-acre plot.
Cytonn Investments has shelved plans to erect a 35-floor triplex tower building in Kilimani, Nairobi, a year after it failed to convince the High Court to overturn a Nairobi City County resolution that cancelled the project in 2018.
The company has now put the plot on sale and is expecting about Sh2 billion to improve liquidity for its real estate funds, according to persons familiar with the issue.
Cytonn had in July 2017 received the NCC approval to build a triplex complex on a four-acre piece of land at the junction of Elgeyo Marakwet and Argwings Kodhek roads for Sh20 billion inclusive of the land acquisition bill of Sh1.5 billion.
Cytonn Towers was planned as a 150m high, 35-floor triplex tower with 30 floors of office and commercial space, 180 hotel rooms, 160 serviced apartments, three-bedroom duplex apartments, penthouse suites, and three basement parking floors for 1,500 cars.
The tower was expected to host Kenya’s highest suspended restaurant, as well as the country’s biggest elevated infinity edge pool. It would also have hosted the city’s largest ballroom, a double horizon fitness club and an observatory deck.
The project, whose completion was scheduled for December 2022, was to be funded by local and global investors’ funds, with Finnish asset manager Taaleri Plc as the main investor.
Cancellation of the approval
The development suffered a fatal blow on April 30, 2018, after City Hall resolved to cancel the approval of the project, saying Cytonn did not show how a surge in traffic triggered by the project would be handled.
Some Kilimani residents had also protested the construction of Cytonn Towers arguing that it would disturb their lives and businesses. The proprietors of Cavina School, for example, bemoaned that the development would put at risk the health and safety of their learners.
RELATED: Cytonn Begins Work on Sh15bn Ruiru Mixed-Use Project
Cytonn went to court to challenge the cancellation, arguing that City Hall had no authority to cancel an approval once it had granted it.
The company said it had addressed the issue of traffic management.
In his ruling early last year, Justice John Mativo said there was no evidence that City Hall abused its powers under the law by cancelling the multi-billion-shilling project.
Four-acre corner plot
On Jan. 6, Cytonn chief executive Edwin Dande announced that the company had resolved to sell the four-acre corner plot with two access roads on Argwings and Elgeyo Marakwet to unlock its capital.
“Due to recent negative publicity, thanks to my two buddies in Upper Hill, we now have to sell [the land] to improve liquidity for our real estate funds… We are selling the best land in Kilimani,” he said.
The company is now accepting bids for the property.
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