Centum Real Estate is actively pursuing a $20 million loan from the International Finance Corporation (IFC) to facilitate the financing of its Mzizi Court affordable housing project located at the Two Rivers Development.
Despite the IFC refraining from disclosing the specific terms of the loan, it has underscored the significance of this funding as it represents a long-term debt solution crucial for a sector typically perceived as highly risky by conventional commercial investors.
This proposed loan is intended to be a substantial contribution toward the overall cost of the Mzizi project, which is estimated at $91 million.
To bridge the financial gap, Centum Re, the subsidiary overseeing Centum Investment Company’s real estate assets, is committed to internally funding the remaining $71 million.
The involvement of the IFC in this financing endeavor is anticipated to enhance the credibility of Centum Real Estate and, more significantly, to attract additional investments into Kenya’s affordable housing sector.
Within the subsidiary Centum Re, positive financial outcomes have been reported, driven by substantial unrealized gains on investment properties and increased revenue derived from the sale of residential units.
Capitalizing on its recent acquisition of a special economic zone (SEZ) license covering more than half of the Two Rivers Development, Centum Real Estate is strategically positioned to leverage this advantage.
The company foresees potential boosts in sales and heightened appeal to global service companies, particularly within the dynamic business-friendly environment fostered by the SEZ framework.
This multifaceted approach underscores Centum Real Estate’s commitment to robust financial strategies and its overarching goal of making a significant impact in the real estate market.