Kenya’s Centum gets $150 mn commitment from emerging markets investor

 Kenya’s Centum gets $150 mn commitment from emerging markets investor

Centum Real Estate, a wholly owned subsidiary of Centum Investment Company PLC, has signed an agreement with emerging marketing alternative investment group GEM Global Yield LLC SCS to raise up to KES17 billion ($150 million).

The agreement is with respect to a subscription facility for a 36-month period following a public listing. This will allow Centum Real Estate to draw down funds by issuing shares of common stock to GEM. Centum Real Estate will control the timing and the maximum size of such drawdowns and has no minimum drawdown obligation.

Centum Real Estate is developing over 1,400 homes, many of which have already been completed. Another 3,000 homes 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 for sale to other developers.

James Mworia, managing director at Centum Investment, said: “The commitment by GEM provides an independent market validation of the attractiveness of the Centum Real Estate business model, demonstrates depth of investor interest and helps us in strengthening market confidence in the business of Centum Real Estate.”

GEM is a Luxembourg-based $3.4 billion alternative investment group with operations in Paris, New York, and the Bahamas. It has completed over 500 transactions in 70 countries.

It manages multiple funds and investment vehicles. Each 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 venture investments.

Vivek Sinha

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