A section of NextGen Mall along Mombasa Road is set to go on public sale after auctioneers came calling.
The property located on the first floor will be sold in order to recover a loan of an undisclosed amount, becoming the latest business to go under the hammer as the effects of real estate saturation and a sluggish economy continue to bite.
Just last week, the Nairobi UpperHill Hotel was put up for auction to recover a debt owed to National Bank of Kenya.
Garam Investments has set the NextGen auction for February 18 at the firm’s offices in Westlands.
In a communication posted by the firm on Monday, it says it is under instruction from the mortgagee’s advocate to auction the property on the parcel of land known as L.R No. 209/18648 (UNIT C) MOMBASA ROAD, NAIROBI COUNTY, registered in the name of Cresta Investments Ltd, together with the buildings and improvements erected therein.
“The property is situated along Mombasa Road and near Eka Hotel. It is identifiable as Nextgen Mall. The property is conveniently located along the busy Mombasa Highway in South B and within close proximity to the Southern Bypass and the City Centre,” read the notice.
The mall in 2018 was embroiled in a tussle between about 100 owners who had bought commercial spaces therein and the developer over sharing of facilities such as parking lots and common areas.
It hosts an ultramodern seven storeyed commercial building with a mezzanine floor and two basement parking lots.
“Our subject however is Unit C, which is on the first floor of the building and is identifiable as Pent Office, packaged together with three parking bays, accommodation which includes a reception lobby passage, thirteen single room offices, two double room offices, a meeting room, a boardroom, a kitchen fitted with a sink, inbuilt cupboards and private granite worktops. It has a lettable area of 5889.5 square fee,” Garam says.
The property attracts a monthly rent of Sh530,000, according to Garam.
The auctioneer indicates that the title is that of leasehold interest for a term of 99 years with effect from September 1, 1986.
NextGen Mall has a total of eight floors with 200 retail units over three floors, four floors of office space and one floor occupied by eateries, lounges and a fitness centre.
It also hosts a large food court with several restaurant brands like Dominoes and Burger King among others.
It is part of the larger NextGen Park that hosts residential apartments.
The mall is owned by Navin Shah.