Hass Petroleum makes Sh20bn bet in real estate with 67 story building

The Hass Petroleum Group has signed a Sh20 billion deal with a Chinese construction firm to construct a 67 story building in Nairobi.

The project will be constructed by China State Construction Engineering Corporation, with the building touted as one of the tallest buildings on the continent.

The move into real estate is part of Hass’ plans to boost its revenues at a time the country’s real estate market continues to offer the best rate of returns.

The mixed development building will be located in Upper Hill, one of the capital city’s hot spots for both office and hotel development.

Hass Petroleum Group Chairman Abdinassir Ali Hassan said the project would spur the local construction industry while deepening ties with the Chinese government.

“Hass Group awarding the contract to CSCEC demonstrates a stronger growing economic partnership between the Chinese Government and the Kenyan Government, and is a testament to Kenya’s economic and political stability. This project will give CSCEC a majestic entry point into Africa,” Mr Hassan said.

One of the main features in Hass Towers will be a five star Hilton Hotel.

This will be the third Hilton Hotel in Nairobi after the CBD hotel which was opened in 1964 and the soon to be complete Hilton Gardens located near the Jomo Kenyatta International Airport.

The petroleum group is undertaking the project jointly with real estate developers Jabavu Village Limited and White Lotus Projects.

Hass is believed to be a significant shareholder in White Lotus Projects.

Hass Petroleum is ranked Kenya’s eleventh oil marketer with a market share of 1.7 percent.

The firm also has significant oil logistics business for countries in the east African region.

Apart from the hotel, the building will also feature a luxury retail and entertainment complex.

The building will feature two towers with the shorter one housing the 255 guest-room hotel while the other tower will be left primarily as an office block.