By Watchdog reporter
Uganda Breweries’ mother company the East African Breweries Limited (EABL) has sold its headquarter in Ruaraka in Nairobi, in the latest series of asset sales to help lift the company’s bottom line.
The building has been sold to Tembo Sacco, a 2,400-member savings and credit cooperative society owned by the current and former EABL staff.
The building according to reports from Kenya was bought at Ksh675 million.
The sacco however has leased back the building to the brewer, with an estimated annual return of between seven and eight per cent.
Tembo Sacco, is floating 142,300 shares at a price of Ksh5,000 each, totalling Ksh711 million — to finance the transaction. The deal is expected to be completed by April next year.
EABL raising money
EABL has over the past five years been involved in a wave of asset sales, including selling off depots, go-downs, idle land and property and more recently a glass-making subsidiary.
In 2012 the company sold 32 acres of land on Nairobi’s Thika Highway to London-based private equity fund Actis for an undisclosed amount. The multibillion-shilling Garden City Mall now sits on the land.
EABL also sold the former Castle Breweries plant on Thika Highway to Kimani Rugendo, the entrepreneur who owns Kevian Kenya Limited — the company that makes the Afia juice brand — in a deal believed to have been worth Ksh600 million.