ILAM Fahari Real Estate Investment Trust (REIT), the owner of Donholm’s Greenspan Mall, plans to introduce residential apartments within the shopping complex, deepening its transition into a fully integrated mixed-use development.
The expansion will see the property combine residential, retail, and office spaces, aligning it with major mixed-use developments such as Two Rivers and Garden City.
According to ILAM Fahari REIT Chairman Andrew Ndegwa, the company identified residential housing as the most commercially viable use for the mall’s unused land after reviewing several investment options.
He noted that the project has already advanced to Stage 3 of the Royal Institute of British Architects (RIBA) Plan of Works, with consultants appointed and preliminary work underway. Construction is expected to begin in 2026, subject to approval from the board, trustees, and regulators.
At the same time, the REIT is seeking to improve occupancy levels at its office property, 67 Gitanga Place in Nairobi’s Lavington area, which remained largely unoccupied throughout 2025 following the departure of a key tenant. Only about 14% of the office space was occupied during the second half of the year.
The planned residential development marks a strategic shift for the REIT manager, whose previous investments largely involved acquiring completed assets across the retail, office, and industrial sectors rather than undertaking new developments.
Greenspan Mall was acquired in December 2015 for Sh2.09 billion. Located on a 9.5-acre site in Donholm, the property currently features a retail complex with approximately 14,350 square metres of gross lettable space and parking capacity for 1,000 vehicles.
The REIT believes the property still holds untapped value through redevelopment and reconfiguration of both the excess land and tenant mix.
In its annual report, the manager noted that the mall benefits from strong anchor tenants led by Naivas and China Square, alongside restaurants, entertainment facilities, wellness centres, banks, healthcare providers, salons, cinemas, and fashion outlets.
Improved occupancy at Greenspan Mall played a key role in cushioning the REIT from a broader decline in profitability. Although overall profit fell 35% from Sh377.2 million in 2024 due to lower fair value gains across the investment portfolio, the property recorded a Sh100 million valuation increase driven by stronger performance at the mall.
Occupancy at Greenspan rose from 86% to 93% in 2025, contributing to a 9% increase in rental and related income.
In contrast, 67 Gitanga Place continued to underperform as the REIT struggled to secure new tenants to fill vacant office space.
