Hmmm, KenyaRe should sell off one of its buildings in Upper Hill to EACC/DPP. Then use the cash to build the 21 story tower on the 2 acres opposite Don Bosco when the market looks better. In the meantime the cash can be placed in a T-bond for 2-5 years.

Ohh, so that is Kenya Re land? There are some "masais" making a killing leasing parking space to church goers and NTSA visitors.

I am not a fan of "property" for the sake of owning property when there are other asset classes OR the ability to own property through alternate means.

If the UH building is worth [or there's an offer] 1bn at a 8% Gross/Pre-tax Rental Yield, I'd rather sell the building and re-invest the cash into Car & General. C&G owns lots of property along Lusaka Road plus has a decent but not spectacular business that generates post-tax Earnings Yield of 8%.

I like tax-free T-Bonds at 13% [12 years] as well. That's 17% pre-tax which is 2x the Rental Yield. Unless the building increases in value at 8% p.a., the Bond is clearly superior [less hassle, admin, etc].

Or KenRe should cut a deal with EABL/BAT/credit-worthy tenant to buy a plant/land/building as a Sale-Leaseback at a return better than 12%. Recently EABL borrowed at 14.17% p.a. for 5 years.

Bottomline: Can other options (as listed above) beat KenRe's after-tax rental returns?

P.S. About the 30 acres. Value?

Better they own the building and rent it out to tenants.
Companies like EABL which sold their building was due to cashflow issues and wanting to inflate profits in the short term.
Worldwide Insurance companies and pension schemes are known to own buildings and properties coz of returns that supplement the main business