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JUBILEE HOLDINGS
VituVingiSana
#141 Posted : Thursday, April 07, 2022 8:37:40 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,864
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#142 Posted : Thursday, April 07, 2022 8:50:01 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#143 Posted : Thursday, April 07, 2022 7:54:34 PM
Rank: Veteran


Joined: 6/2/2010
Posts: 926
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.
Ericsson
#144 Posted : Thursday, April 07, 2022 11:25:01 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#145 Posted : Friday, April 08, 2022 7:27:45 AM
Rank: Veteran


Joined: 6/2/2010
Posts: 926
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
VituVingiSana
#146 Posted : Friday, April 08, 2022 8:51:09 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,864
Location: Nairobi
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#147 Posted : Friday, April 08, 2022 10:32:39 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations.
Those are post transaction costs which are neither here nor there.
Transparency ni muhimu in investing.
For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#148 Posted : Friday, April 08, 2022 11:14:15 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


JHL intend to move their HQ to Upper Hill and rent out the CBD building
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#149 Posted : Saturday, April 09, 2022 12:46:44 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,864
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations.
Those are post transaction costs which are neither here nor there.
Transparency ni muhimu in investing.
For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee.
Laughing out loudly Laughing out loudly Laughing out loudly Then what are these costs you are referring to that are NOT related to extensions, renovations or closing costs (legal, stamp duty, etc)?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#150 Posted : Saturday, April 09, 2022 12:48:52 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,864
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


JHL intend to move their HQ to Upper Hill and rent out the CBD building

JHL, like other holding firms, may choose to charge commercial market rents to their subsidiaries.

All in all buying the UH property was smart.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#151 Posted : Saturday, April 09, 2022 5:40:48 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations.
Those are post transaction costs which are neither here nor there.
Transparency ni muhimu in investing.
For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee.
Laughing out loudly Laughing out loudly Laughing out loudly Then what are these costs you are referring to that are NOT related to extensions, renovations or closing costs (legal, stamp duty, etc)?

At the close of the deal the price might be revised upwards.For example I&M when they announced they were buying Orient Bank Uganda the cost was ksh.3.6bn,at the time of completion of the deal the cost had risen to more than ksh.4bn

https://www.businessdail...ient-bank-stake-3387000
https://www.theeastafric...an-unit-in-july-3701606

I&M had initially estimated to spend Ksh3.6 billion ($31.6 million) in the buyout but the amount had risen to Ksh4.1 billion ($36 million) as of June last year.

“When you do the transaction, you are looking into the books and what you might get. Later on as you do the business may need changes here and there. That is still underway,” I&M Bank Kenya chief executive Kihara Maina told Business Daily in an interview.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#152 Posted : Monday, April 11, 2022 12:29:34 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
https://www.businessdail...ts-headquarters-3778064

Jubilee Holdings is spending $4 million (Sh461 million) to build a head office for its Tanzanian operations in a move that will save the insurer tens of millions of shillings in rent.
“We are building headquarters for our Tanzania business in Dar es Salaam. That is going to cost us $4 million (Sh461 million),” Jubilee’s chairman Nizar Juma told the Business Daily.

“We have owned land there for many years and we feel this is the right time to build the headquarters.

He added that the decision will see the company save the $400,000 (Sh46.1 million) that its subsidiaries operating in that market have been paying in rent annually.The company’s subsidiaries and associates in Tanzania include Jubilee Life Insurance Corporation of Tanzania Limited and Jubilee Investments Tanzania Limited.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#153 Posted : Monday, April 11, 2022 11:01:09 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,864
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
My 2 cents wrote:
Ericsson wrote:
My 2 cents wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
Insurer Jubilee buys Coca-Cola office at Sh1.1bn

Quote:
Jubilee Holdings has bought Coca-Cola East Africa’s former head office in Nairobi’s Upper Hill at a cost of Sh1.1 billion, with the insurer planning to move its headquarters to the property in September.


Quote:
The property, which sits on 3.2 acres, had been on the market for more than two years. Coca-Cola announced the sale of the property in July 2019 after moving to a new building in Lavington.


Land experts, is this price right?
Respect!
I think KenyaRe claimed Upper Hill is 500mn/acre.
Assume this is true then JHL got 3.2 acres (1.6bn) in land AND a really nice building with fancy features.

They will probably lease the offices in CBD.


With covid-19 and economic slowdown the price has dropped to around ksh.400mn
Irrelevant in the long-term grand scheme of things but to help you out (400mn x 3.2 acres) + Nice (newish) Building is still less than 1.1bn


Check your calculation again,is it more or less than 1.1bn.
Don't be too excited about the ksh.1.1bn as the purchase price,there are some details not yet disclosed by Jubilee.
Once they are disclosed you will find out that the total consideration Jubilee will pay will be higher than the ksh.1.1bn.


VVS is right. That was a fantastic deal for Jubilee. Like he says Jubilee basically bought the land, and the building was thrown in for free. Great great purchase.


Hold on your excitement till you get the finer details.The deal may not be as fantastic as reported.


It is such a good deal that even at say 1.5B, it is still a deal.
Laughing out loudly Laughing out loudly Laughing out loudly @ericsson always has drama. I have learnt to ignore the noise. As you say, even if there are other costs eg stamp duty, renovations, extensions, etc and it ends up at 1.5bn... based on the 400mn/acre [supplied by @ericsson] 3.2acres x 400mn = 1.25bn so everything else including the building is for only 250mn!

These days in Kiambu (Edenville) there are houses at 25mn each. So JHL is getting a really high quality building (less the land) for 10 houses in Kiambu! Laughing out loudly

It would not surprise me to see Jubilee try to get a couple of diplomatic missions/DFIDs/NGOs/MNCs into the property. Folks who pay in USD/EUROs.

If JHL can generate net 150mn net income from this property, it will probably beat most other commercial buildings in UH. An agent I spoke to told me 4-8% yields are the norm in UH.


It's not about drama,it's saying the truth and disclosing all details.The costs i'm talking about are not related to extensions,renovations.
Those are post transaction costs which are neither here nor there.
Transparency ni muhimu in investing.
For now hold your mouth as we wait for the detailed transaction document between Knight Frank and Jubilee.
Laughing out loudly Laughing out loudly Laughing out loudly Then what are these costs you are referring to that are NOT related to extensions, renovations or closing costs (legal, stamp duty, etc)?

At the close of the deal the price might be revised upwards.For example I&M when they announced they were buying Orient Bank Uganda the cost was ksh.3.6bn,at the time of completion of the deal the cost had risen to more than ksh.4bn

https://www.businessdail...ient-bank-stake-3387000
https://www.theeastafric...an-unit-in-july-3701606

I&M had initially estimated to spend Ksh3.6 billion ($31.6 million) in the buyout but the amount had risen to Ksh4.1 billion ($36 million) as of June last year.

“When you do the transaction, you are looking into the books and what you might get. Later on as you do the business may need changes here and there. That is still underway,” I&M Bank Kenya chief executive Kihara Maina told Business Daily in an interview.

A bank and a building are very different creatures.

I&M probably got more shares in I&M UG for the additional 500mn. They probably did not pay MORE for the 90%.

Similarly, Jubilee probably paid 1.1bn (excl closing costs) for the building but invested more to improve/expand the property/office space.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#154 Posted : Sunday, November 20, 2022 4:33:39 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,528
Location: NAIROBI
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
tandich wrote:



https://pbs.twimg.com/me...rmat=jpg&name=large


A.That subject to all statutory and regulatory approvals being obtained,the sale by the company and/or its wholly owned investment subsidiaries of the following shares in the below listed target companies to Allianz Africa Holdings GmbH be approved;
(i)66% shareholding of Jubilee General Insurance Limited in Kenya
(ii)51% shareholding of the Jubilee Insurance Company of Burundi
(iii)31% shareholding of the Jubilee Insurance Company of Uganda
(iv)54.15% shareholding of Jubilee Insurance Mauritius Limited
AND FURTHER,the Shareholders approve that following the sale of the aforesaid shares in the Target Companies,the Target Companies shall no longer be subsidiaries of the company.

B.That the incorporation of a new subsidiary in Tanzania in preparation for the separation of the short-term general insurance business ("P&C business") of the Jubilee Insurance Company of Tanzania Limited (JICT) to be transferred to the new subsidiary leaving JICT as a medical insurer only be ratified,and the sale thereafter of 36% shareholding in the new subsidary to Allianz on the understanding that the new subsidiary will no longer be a subsidiary of the company following completion of sale be approved.

C.That the incorporation of a new subsidiary in Uganda in preparation for the separation of the health insurance business currently operated by The Jubilee Insurance Company of Uganda Limited (JU) to be transferred to the new subsidiary leaving JU to operate P&C business only,be ratified.

Weeh
This is a fire sale.
Nonsense. They got a great deal/multiple. Read the IM.

Actions speak louder 🔊 than words.
Time will tell who spoke nonsense .
How should we measure it?
I would like to come back to it.
Silence from @Ericsson?



https://www.businessdail...neral-insurance-3260150

Meanwhile, Britam Life maintained the lead in the long-term insurance despite its market share shrinking from 24.7 percent to 23.96 percent.

ICEA Lion Life Assurance beat Jubilee to the second spot with a market share of 14.68 percent, a rise from 13.8 percent in June 2019.

Jubilee Insurance had the biggest drop with it's market share dropping from 15.5% in 2019 Q2 to 13.4% in Q2 2020.
ICEA LION Life Assurance had the biggest jump.

Market share is not profits.



We are going step by step,so that at the conclusion whatever the outcome there will be no noise like where is the evidence.


H1 2022
Drop in revenues
Drop in profits
Share price has now gone below ksh.200
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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