Kenya Re tried to sell the Kisumu building but failed to get 1bn about 2 years ago when interest rates were lower and the economy seemed healthier.

Is that building really worth 1bn in this market?

In 2023, interest yields on IFBs is up 50% from 12% to 18%.
The taxes were lower.
The KES/USD was 110-ish vs 155 today.

I doubt Kenya Re can get more than 600mn for it today from a non-government buyer.

1H23 EPS for Fahari was 48c so let's say it gets to 1/- for FY23.

So at 11/- the RoE is 9% while the IFB is at 18%. That's 2x!

*I am NOT saying ILAM will not pay 11/- in 3 years, the economy will not improve, rents will not rise, etc.

I am just giving the other side of the argument that ILAM may not see this as a slam dunk. They (ILAM) may have had other reasons eg ICEALion moving properties to Fahari for tax benefits.