Global construction firm Turner & Townsend has announced that its Kenya business is to merge with Nairobi-based project management firm Mentor Management Limited (MML).
Turner & Townsend has acquired a majority stake in MML from leading growth markets investor – Actis. The transaction is subject to regulatory approval.
The new entity, MML Turner & Townsend, will operate across the real estate, infrastructure and natural resource industries. The merger comes as global investment is fueling Kenya’s diverse economy. Construction activity, most notably in infrastructure, is being driven by institutional and private investment from overseas.
Major projects have been helping to grow inbound investments in surrounding construction developments, including: the Northern Corridor Transport Improvement Project (NCTIP); the Lamu Port and Lamu Southern Sudan-Ethiopian Transport Corridor (LAPSSET); Lokichar to Lamu pipeline corridor; the new Mombasa-Nairobi Expressway and the Mombasa-Nairobi Standard Gauge Railway Project.
LAPSSET in particular will expand port access to Kenya, boost rail construction and include a pipeline for recently discovered oil in the country.
MML has been operating from Nairobi since 1987. Well respected in the commercial and residential sectors, MML has delivered a number of prestigious projects in Kenya including: Garden City Nairobi – one of East Africa’s largest shopping malls; an 11,000 sq m cargo handling facility for Swissport and a new chancery for the Australian High Commission.
Vincent Clancy, Turner & Townsend Chairman and CEO said that the merger will enable MML Turner & Townsend become the largest independent project and programme management company in East Africa.
“Joining Turner & Townsend is a significant step for our employees and clients. Turner & Townsend’s global expertise combined with MML’s local knowledge and reputation, will deliver a unique proposition to clients,”said MML Managing Director John Rogers.
Michael Turner, Head of Actis’s Nairobi office observed that East Africa is a key market for Actis’ real estate team, with strong macro and real estate fundamentals.
“The interest received from strategic investors reflects these fundamentals and MML’s market leading position, we look forward to a continued business relationship with MML Turner & Townsend as we continue to build our reputation as the most experienced sub-Saharan African private equity real estate investor,” he said.