ILAM Fahari I-REIT Plans Mixed-Use Redevelopment of Greenspan Mall

ILAM Fahari Real Estate Investment Trust (Reit) plans to redevelop Greenspan Mall in Donholm into a mixed-use complex by adding residential units to its existing retail and office spaces.

The project marks a shift in strategy for the trust, which has mainly focused on acquiring completed assets in the retail, office, and industrial sectors. The development is currently at stage three of the Royal Institute of British Architects’ Plan of Works and is expected to begin construction in 2026, subject to regulatory and board approvals. 

Chairman Andrew Ndegwa said residential use was identified as the most viable option for the site’s surplus land, aligning the mall with developments such as Two Rivers and Garden City that integrate retail, office, and housing components.

Greenspan Mall, purchased in 2015 for Sh2.09 billion, occupies 9.5 acres in Nairobi’s Donholm area. 

It has a gross lettable area of 14,350 square metres and provides 1,000 parking spaces. The mall is anchored by Naivas, with China Square as a sub-anchor. Its tenants include fast food outlets, banks, wellness centres, entertainment venues, salons, healthcare providers, and fashion retailers. 

Management expects that introducing residential units and adjusting the tenant mix will enhance the property’s value. The mall’s performance has remained stable. Occupancy increased from 86 per cent to 93 percent in 2025, leading to a nine percent rise in rental income and a Sh100 million increase in property valuation.

These gains helped offset a 35 per cent decline in overall profitability, which fell to Sh377.2 million due to lower fair value adjustments across the portfolio. In contrast, the trust’s office asset, 67 Gitanga Place in Lavington, has underperformed. After the exit of a major tenant, occupancy dropped to 14 percent in 2025, well below Nairobi’s average of 82.3 percent. 

ILAM Fahari Reit has reduced its portfolio in recent years following the sale of two industrial properties. Its remaining assets include Greenspan Mall and 67 Gitanga Place, along with cash holdings.