On a sunny Sunday afternoon after church, a mall parking lot should be full of vehicles as families seek food and entertainment.
https://kenyatalk.s3.amazonaws.com/2017/05/166090_9f4aed0de25a229266e7655fba8f0bdc.jpg?d=1495972342
Two Rivers is clearly struggling to fill its parking lots. Tenants without a capital buffer to sit out months of slim sales could find themselves on the brink. This level of occupancy cannot be what Centum projected.
Too much competition from more conveniently located malls. TRM might be the ONLY mall making a kill…a few others may behaving normal returns, especially za Ubabini kama westy or karen. Garden city, Two Rivers, ile ya K.U etc will have a very long payback period.
Wrong on TRM. The human traffic you see there is composed of peasants. For every 10 only 1 has the purchase power. Shops there are struggling to pay rent.
Malls don’t seem to be struggling in Westlands yet. WestGate is always busy and most restaurants except fast foods close at 12. Being a late night shopper, there are always people even past 11. Weekends attract very big crowds especially visiting the restaurants.
Sarit is doing okay. If only they didn’t have Uchumi as their major tenant and instead had Naivas or Tuskys they could drive more traffic towards the place. Location favours them better though and the mall is always crowded during the days. The only struggling tenants are probably the top floor.
Two rivers has given rent rebates to most of the tenants for the next one year. After that it will be turnover based rent. Seems centum is in no hurry to breakeven.
The ought to have hit the promotion roads in local media.
Kama @The.Black.Templar anaingia 2R anachapa roundi mwenda kisha anabuy TP za offer, how will they make money
But I think 2 rivers are smart. They will recoup their investment through capital gains of the real estate.
Cash is king. Capital gains doesn’t help anyone unless the property is sold.
what about basement Parking, hiyo pia ilikuwa empty?
they were selling a portion of their land to service a loan
That shows the importance of cash to a business. Even Uchumi have land valued in billions. But bado wako na cash flow problems
na pia @Nattydread haujaweka pics za food courts na other entertainment spots tuone if they were empty
You know times are tough
The mall system in Kenya is overrated. There was drastic speculative growth without the underlying base to support the said growth. This created a void.
If kenyas economy was to grow at per with people pockets then these malls would be full. But that’s not the case .Money is circulating to only few individuals hands and their offshore accounts .
This is a lesson I learned the hard way, especially on property. A good cashflow is better than wealth that is idle and hard to liquidate such as a plot.
Exactly. Money that is held by a few hundred individuals hardly helps the economy because they dont boost consumption and mostly shop abroad.
What is a rent rebate?
True. Lakini huwa naulizia bei kila mahali!
Hio sasa ndio shida ya wakenya…pesa iko na wachache sana