Centum Real Estate Limited has signed an agreement with Global Emerging Markets(GEM) Global Yield, a Luxemburg-based private alternative investment group, to provide it with a share subscription facility of upto KSh 17 Billion for a 36 month term following a public listing.
The facility will allow the real estate firm, a wholly-owned subsidiary of Centum Investment Company, to drawn down funds by issuing shares of common stock to GEM.
Centum Real Estate will control the timing and maximum size of such drawndowns and has no minimum drawndown obligation.
GEM has committed to make a very sizeable equity investment into the business.
The real estate firm is currently developing over 1,400 homes many of which are already completed. Another 3000 housing units are in the pipeline to be developed in the near term. Additionally, Centum Real Estate holds bulk development rights across its land banks for its future housing development and sale to other developers.
” This commitment from GEM is in line with our mission to build extraordinary African enterprises and to provide a channel through which investors can access them. This is a major vote of confidence in Centum Real Estate and its business model,” said Dr James Mworia, Managing Director, Centum Plc.
He added that the commitment from GEM provides an independent validation of the attractiveness of the real estate developer’s Centum Real Estate business model and demonstrates the depth of investor interest in the firm.
Global Emerging Markets(GEM)is a US$ 3.4 Billion alternative investment group with operations in Paris, New York and the Bahamas.
GEM manages a diverse set of investments vehicles focused on emerging markets and has completed over 500 transactions in 70 countries.
Each investment vehicle has a different degree of operational control, risk-adjusted return and liquidity profile. The family of funds and investment vehicles provide GEM and its partners with exposure to small mid-cap management buyouts, private investments in public equities and select venture investments.
ALSO READ: GCR affirms Centum’s ratings of A+ with stable outlook
