[2008-05-28]  Sameer Africa to launch Sh2.2 billion business park project
Tyre maker Sameer Africa will today launch the construction of its business park along Mombasa Road in Nairobi, a project that has suffered two years of delay.

When completed, the park will form a major income stream for the company which has seen its core tyre business encroached on by cheap imports and the retread market.

Sameer Africa chairman Naushad Merali is expected to commission construction of the KSh2.2 billion Sameer Business Park. The park is a joint venture between Sameer Africa Ltd and its sister company, Sameer Telekom Ltd.

Sameer Africa’s managing director Eric Kimani said that the park would help meet the growing needs of Nairobi as a business city, which requires modern and up market shopping and business centres that attract big companies.

Good income

“Ours will be a business showroom for high end trade,” Mr. Kimani said in an earlier interview. “We anticipate earning good income from renting the new showrooms.” The park is part of a diversification strategy following unstable earnings from tyre sales over the last three years. Business forecast does not seem to favour the tyre maker after it issued a profit warning for the current financial year.

Take off

The park will be built on a 10-acre piece of land that holds the Yana tyres factory. It will include 60 showrooms and offices and an underground parking for 100 cars.

It will let out space to businesses and companies to showcase their products along with office space and exhibition centres. The construction of the park was meant to follow the successful two phases of Sameer Industrial Park Export Processing Zones that have now been fully occupied and plans are being finalised for a third phase.

During the company’s AGM earlier this year, investors demanded to know from the management why the business park, promised two years ago, had failed to take off. It was initially to start in July 2006, but that date was revised to July last year, then October.

Sameer Africa shares traded at KSh10.95 each on Monday, a 9.5 percent drop in price for the year to May 26.


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