Kenya: Centum plans to sell part of its real estate development branch

(Ecofin Agency) – A few days after selling part of the shares of its subsidiary Centum Real Estate, the Centum investment group is considering a similar operation for its land development unit. The deal is expected to close in the second quarter of 2022.

The Centum investment group has entered into discussions with investors to sell part of the shares it holds in Two Rivers Development Limited (TRDL). Businessdaily.com reported that Centum MD James Mworia (pictured), plans to sell an “as yet undetermined” part of the subsidiary’s capital. The transaction is expected to take place in the second quarter of 2022.

“We are engaging with several investors and hope to close soon. The target holding after the transaction depends on the valuation we agree on and the structure, which can be either in the form of equity or in the form of a convertible facility. Within the next three or four months we should have a signed agreement,” the manager said. A few days ago, Centum sold part of its subsidiary Centum Real Estate. The operation, carried out on January 12, enabled the East African group to raise around 150 million dollars.

With the new sale, Centum will raise additional funds to reduce the debt of its subsidiary Two Rivers Development Limited. The company will gradually emerge from a loss-making activity. Last November, the subsidiary reported a loss of KSh342 million for the first half of 2021. In the first half of 2020, it was KSh1 billion.

Chamberline Moko

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