Broll will sell at least 40 per cent of its stake in the Ugandan unit, according to information obtained by Daily Monitor.
Mr Dennis Lutalo, the Broll Uganda country manager at the weekend, confirmed the intended sale but declined to reveal the company involved.
“In two weeks we will announce who will acquire the 40 per cent stake,” he said without going into details.
Industry analysts had indicated that the 40 per cent stake would be acquired by Pine Investments. However, Mr Lutalo dismissed the claim, noting: “I can assure you it’s not Pine Investments.”
Broll, an international property services management company, recently signed a property management contract with Pine Investments, in which, beginning September 1, it will manage estates under Rwenzori Properties.
Pine Investments, which is co-owned by Attorney General William Byaruhanga, and businessmen Mr Charlie Lubega and Mr Henry Lubwama, owns a property development firm, which among others, manages Rwenzori Properties.
Three of the properties are office blocks in Nakasero, Kampala, all of which have at least some 16,000 square metres of lettable space. The properties had previously been under the management of Knight Frank.
Early last year Mr Lutalo had told local media that Broll South Africa, which owns the Ugandan subsidiary, was finalising a deal to sell some 40 per cent of its stake in the Ugandan unit.
“We are still finalising a couple of things but when we are done, at least 40 per cent will be owned by local shareholders,” he said. The company, which entered Uganda in 2017, has made little headway in a market largely controlled by Knight Frank.
Knight Frank controls at least 70 per cent of the commercial real estate sector with some high profile properties such as Acacia and Village malls, among others.
This excludes owner-managed properties such as those under Crane Management and Property Services.
The remaining market share is shared between Bageine & Company, which has been in the market for at least 30 years, Broll and others.
Last year, Ms Judy Rugasira Kyanda, the Knight Frank managing director, said Knight Frank manages approximately 1m square metres of retail space, more than 100 residential units and 500,000 square feet of office space.