Broll Property Group (Mauritius) Ltd has relinquished a 40 per cent stake in Broll Uganda, its Ugandan subsidiary.
Speaking to Daily Monitor, Uganda’s leading independent daily, Moses Dennis Lutalo, the Broll Uganda Country Manager, confirmed the move.
“In the next two weeks we will announce who will acquire the 40 per cent stake of Broll,” he told Daily Monitor, without saying who the new shareholders will be or the terms of the deal.
He also separately told this writer that indeed a local company would acquire the 40 percent shareholding in their Ugandan unit.
“We have local shareholders, it’s a company,” he told this reporter via WhatsApp, without giving reason for the move.
In a November 2019 interview with CEO East Africa Magazine, Mr. Lutalo had said that Broll runs a model where Broll South Africa owns but a portion of the business which is usually reserved for local shareholders and that Broll Uganda was not any different.
“We are still finalizing a couple of things but when we are done, at least 40% of Broll Uganda will be owned by local shareholders in the not so distant future,” he told this reporter then.
Lutalo separately told this reporter that his company had signed a property management contract with Pine Investments the proprietors of the famous Rwenzori Properties- Rwenzori Properties owns Rwenzori House, Rwenzori Towers and Rwenzori House in Nakasero. The contract will run from September 1st, 2020, he said. The three Rwenzori properties, altogether consisting of some 16,000 sqm of lettable space were being run by Knight Frank Uganda, the market leader.
Pine Investments is co-owned by the Attorney General Mr. William Byaruhanga; entertainment mogul, Charlie Lubega of Guvnor Night Club and Henry Lubwama, of HL Investments, that had acquired the 40 percent stake.
Lutalo could not say whether the change in management of the Rwenzori Properties was linked to the changes in shareholding. He also denied that it was Pine Investments that had acquired the 40 percent stake. He also did not say whther it was a company linked to Pine Investments or its owners.
Letters to My Younger Self: Robinah Siima — “Success Is Quieter, But Richer”“I will share with you the entire story soon. I need authorization to disclose the local shareholder for now,” he said.
What impact will the Rwenzori Properties deal have on the balance of market power?
Broll which entered the Ugandan market in 2017 has made slow gains in a market largely controlled by Knight Frank, who has a lion’s share of the market. Knight Frank is believed to control approximately 70% of all commercial assets under management, including some signature properties like Acacia Mall, Village Mall and the under-development Arena Mall in Nsambya. This excludes owner-managed property development and management companies such as Crane Management Services and Property Services. The remaining market share is shared amongst Bageine & Company Ltd, who have been in the market for at least 30 years as well as Broll and other smaller companies.
Judy Rugasira Kyanda, in an interview with CEO East Africa Magazine, late last year, said her firm manages approximately 1,000,000 square metres of retail space, over 100 prime residential units, and, 500,000 square feet of office space.
Knight Frank started in 2009 primarily as an estate agency known as East African Property Agency Ltd, (EAPA) and later became a fully-fledged international property consultancy firm in November 2000 when Knight Frank acquired the business, rebranded and head-hunted Judy Rugasira Kyanda to head up the valuations department.
Judy would later work her way upwards to become the Managing Director and shareholder in 2005. Under her, Knight Frank Uganda has grown to become a market, leader from a company of just 12 staff, and a portfolio of 2 small commercial, and 4 residential properties. The company is now a fully-fledged organization with several property professionals offering asset management and facilities management; corporate real estate services, and property agency.
Knight Frank which stands out in the market for its specialised retail centre management unit headed by Marc Du Toit who possesses over 30 years of retail centre leasing and management experience in South Africa, Asia and America. The company also stands out for its valuation and advisory as well as research and consultancy, with a dedicated resource for specialized asset classes like Healthcare, and Education sectors).
Judy herself is a seasoned property professional with over 25 years’ experience in the property sectors of East Africa and the United Kingdom. She is a Chartered Valuation Surveyor and member of the Royal Institution of Chartered Surveyors, and is also Chair of the Surveyors Registration board serving for her second term.
Knight Frank Uganda which turns 20 this year and is part is majority-owned by Knight Frank UK (which celebrates its 120th anniversary this year, has been crucial in the development of the previously non-existent property management industry.
