Centum Re To Earn Kshs 17B in Share Sale
Centum Real Estate has signed an agreement to raise Sh17 billion from Luxembourg-based private equity firm GEM Global Yield LLC CSC.
The money will be earned through a partial share sale.
The transaction will mark the parent firm –Centum Investment Company Plc — partial exit from the subsidiary.
Centum Investment Company plc holds most of its real estate assets at the Real estate arm.
Centum Re will be listed at an undisclosed exchange at the point of accessing the funds from the foreign institutional investor, according to the share sale agreement.
“Centum Re is pleased to announce that it has signed an agreement with GEM Global Yield LLC SCS …
This is to provide Centum Real Estate with a share subscription facility of up to Sh17 billion for a 36-month term following a public listing,” the company said in a statement.
“The share subscription facility will allow Centum Re to draw down funds by issuing shares of common stock to GEM.
Centum Re will control the timing and the maximum size of such drawdowns and has no minimum drawdown obligation.”
Centum Re Developments
The company is developing thousands of homes and also holds large parcels of land in Kenya and Uganda, according to Business Daily.
It says it is currently building 1,400 homes, adding that most of these have already been completed.
“Another 3,000 homes are in the pipeline to be developed in the near term.
Additionally, Centum Re holds bulk development rights across its land banks for its future housing development and for sale to other real estate developers.”