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KN IGHT F R ANK K E N YA

Planning for long-term development in a competitive market www.knightfrank.co.ke

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Buildings in Town

Knight Frank is one of the world’s most renowned names in global property consultancy, and is leveraging this reputation to capitalise on East Africa’s ever strengthening gateway into the continent Writer: Matthew Staff Project Manager: Stuart Parker

night Frank’s 50-year tenure in Africa has seen the region become one of the linchpins in the global property consultancy’s international progression, with the east of the continent leading the way from its Kenyan hub. Nairobi is recognised not only as the country’s capital, but the capital of East Africa as a whole, forming an axis across the continent alongside Johannesburg in the south, Lagos in the west, and formerly Cairo in the north. With a presence in the region now spanning two decades, Knight Frank’s influence in this prosperous East African nation – offering the letting, sale, management and valuation of commercial and residential property – has reached new highs in recent years, with a sustainable longterm plan in place to cement its strong market position in the future. Knight Frank Kenya Managing Director (MD), Ben Woodhams explains: “With 160 employees

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and a significant turnover, Kenya is the company’s biggest operation in Africa, currently letting more retail space than the UK operation. “As the lead letting agent for numerous 50,000 square metre-plus malls in the region, we have around four million square feet of retail space either in the market now or about to come on to the market, with the company replicating its global business model as a multi-practice real estate consultancy, including carrying out market and feasibility studies across both residential and commercial development.” Being the largest property manager in the region with more than five million square feet of commercial space under management, Knight

The Watermark Business Park in Karen, an office park development being let by Knight Frank

Frank Kenya has recently safeguarded its extensive portfolio through a significant capital investment in an in-house property management and accounting system. Woodhams says: “What this allows us to do is manage everything more efficiently. We’ve been able to bolt on more and more properties to our system because we have a package which is not only bespoke, but we can also change it where we see fit, and expand it almost limitlessly.”

Partner of choice

Internal differentiators such as this new in-house system are pivotal in what is becoming an increasingly competitive market. Previously acknowledged as a

partner of choice in East Africa, new entrants into the market from South Africa are putting pressure on Knight Frank to sharpen its pencils and reenter the pitching domain to attain new business; a challenge which the business is more than willing to take on and capable of overcoming. “It’s not an easy market to operate in with multiple currencies and the challenge of delivering the level of services that a multinational company would expect in the west but in a third world environment. However, the Knight Frank brand and our integrity set us apart,” Woodhams notes. “Despite the new competition, in the past 12 months we have had two people who had left return to us, which proves that the grass is not

necessarily greener on the other side.” Arguably the most valuable asset engrained into the Knight Frank philosophy stems from its reputation, having proven its reliability and consistency over the years to achieve methodical and steady growth. Woodhams adds: “We have built the business up through relationships with architects and developers, introducing blue-chip tenants to brand new buildings in our portfolio, and not involving ourselves in any project to make a quick buck that might come at the expense of our reputation or brand name. “These Fortune 500, blue-chip tenants have helped build our business because they are easier to manage, are capable of paying more rent, and are,

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KK Security K

K Security has, for nearly 50 years, been innovating and challenging the security industry status quo, driving and pioneering resolutions for large blue-chip companiesincluding Knight Frank Kenya, diplomatic missions and residential properties. This has necessitated a dedicated, world-class management team and a motivated, intensively trained safety and security force. Wherever we operate, our commitment is to provide service with integrity. For us this is much more than a tagline: it captures our essence. Safety, security and risk management has become of paramount importance to individuals, corporations and governments. There has been an increase in threats ranging from extremist groups to the usual but ever more sophisticated, criminal activities experienced in major cities, towns and rural areas across the region. Further, stricter legislation regarding health and safety and the environment has created an urgent need for better understanding and innovative measures to manage those risks. KK Security has the expertise to help clients develop strategies to strike the optimum balance between costs, risks and desired outcomes. KK Security has striven to offer world-class services to clients across all sectors in the region. We have partnered with international suppliers to ensure unparalleled service to our clients. We provide an extensive range of safety and security solutions covering a wide spectrum of risk environments. With a regional network of branches in Kenya,

Tanzania, Uganda, Rwanda, DR Congo, Burundi and Malawi, we offer a mix of security solutions including trained security officers, K9, technology, cash management, facilities management, professional training and security & safety consultancy. With years of experience, we have grown to cater for every industry in the East and Central Africa. To ensure that our standards are relevant and meaningful, we seek and maintain accreditation with the leading international bodies in our industry sectors which include British Security Industry Association, Skills for Security, the International Code of Conduct for Private Security Companies, National Association of Security Dog Users, Fire Protection Association, UK Fire Protection Association and both the Kenya and Rwandan Security Industry Associations. We are ISO certified. We have built our business on the foundations of ethics, integrity and trust. We use our core skills to help foster a sustainable business. We have a commitment to operate responsibly wherever we work in the region and to engage with our stakeholders to manage the social, environmental and ethical impact of our activities in the different markets that we operate in. The policies that govern our operation ensure responsible business practices.

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KK SECURITY

Service with Integrity

THE KK GROUP OF COMPANIES

Providing Security and Peace of Mind to Families and Businesses for nearly 50 years

www.kksecurity.com more importantly, willing to do so as they understand the value of being in the best buildings in town.”

Interiors of the Westend Towers in Westlands, which is being let and managed by Knight Frank

global company acting locally certainly a critical element when it comes to addressing infrastructural and personnel challenges. Global consistency “The biggest difference on the With such an extensive global cachet continent is firstly the type of to leverage, Knight Frank Kenya properties, with Africa being more understandably looks to maintain about the management of shopping as consistent a service across all of centres and office buildings for large its operating regions as possible, corporates, rather than country and – despite certain region-specific homes or estates which people often challenges – the same very much associate with Knight Frank. applies across East Africa. “Also, because Kenya is a Woodhams states: “Everything is developing country, we have massive done under the global model and we infrastructure challenges, with the lean heavily on the fact we are members country simply unable to keep up with of the RICS, with all valuations done the rate of development.” according to the red book. Regardless, the company “There is a high level of consistency endeavours to ensure that its across all of our offices, with each residential and commercial occupiers adopting all the same principles in the get as consistent a level of service valuation process.” as possible under the conditions, This isn’t to say that more localised bolstered by a core of indigenous staff considerations aren’t addressed who know the local market better than however, with the ability to be a anyone.

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Here to stay

While Kenya is the hub of the region, its complementary operations in the vicinity, including Tanzania and Uganda, are on the verge of being joined by Rwanda, a joint investor having been established and local shareholdings in the process of being finalised. “When Knight Frank says we’re in a country, we really are in it. We take expansion seriously, so when we consider moving into a new country, we’ll either do it properly or wait until the timing is right,” the MD says. “What we tend to do is team up with a local partner who typically owns or has access to a ready supply of fee-earning property; therefore taking some of the issues away from us that one would otherwise face in a new, challenging environment.” Meticulous expansion and alignment of growth will remain the crux of the company’s continuous improvement plans over the years to come, as Nairobi becomes even more of a pivotal hub and gateway to the continent; especially for foreign direct investment coming in from the Middle East and Asia. This all means that the market is likely to accelerate ahead of the growing levels of competition, leading to an exciting period of growth for an already prosperous business. “In three to five years, I would

Mandharini Kilifi, a luxury homes development for sale by Knight Frank

Rear view of the Oloidien Bay House

Knight Frank staff join hands with Ben Woodhams during the rehabilitation of Westlands Primary School football pitch

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When Knight Frank says we’re in a country, we really are in it. We take expansion seriously, so when we consider moving into a new country, we’ll either do it properly or wait until the timing is right

expect Knight Frank to be doing more of the same, with much more competition but much more business as the market expands, and we see phenomenal levels of investment coming into the country,” Woodhams concludes. “Over this time, I expect our management portfolio to expand dramatically as more and more global corporates set up regional offices in Nairobi, meaning that we get stronger and stronger as a result. “Having grown up in Kenya and having a bit of a homecoming in 2003 when I returned, I am happy to say that Knight Frank is here to stay and that everything we do is geared towards long-term growth, looking after our clients and the people we have in the company. After all, they are our biggest asset.”

Oloiden Bay House, Naivasha, for sale by Knight Frank

Living room, Oloidien Bay House

Knight Frank staff celebrate after emerging overall winners on the first day of the white-water rafting competition.

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KNIGHT FRANK KENYA Lion Place, Ground Floor Waiyaki Way, Westlands 00623 Kenya T: +254 20 4239000