Centum RE secures Shs17bn investment from GEM as it eyes more investors

Centum RE secures Shs17bn investment from GEM as it eyes more investors

Managing Director of Centum Plc, James Mworia NAIROBI, Kenya Jan 11 -Centum Real Estate Limited, a wholly-owned subsidiary of Centum Investment company has signed an agreement with GEM Global yield, the Luxembourg-based private alternative investment group, to provide Centum Real Estate with a share subscription facility of up to Shs17 billion for a 36-month term.

The equity investment which is subject to Centum’s public listing will allow the real estate firm to draw down funds by issuing shares of common stock to GEM.

In a statement dated Jan 11, James Mworia, Centum’s Managing Director indicated that the investment validates the market opportunity pursued by the firm in providing housing in Sub Saharan Africa whose demand is barely met.

“We are quite pleased with this development and look forward to attracting even more investors into Centum Real Estate,” Mworia said

Mworia added that the provision will enable the firm to achieve its mission of building African enterprises and provide a platform where investors can access them.

The commitment by GEM, he said, is a major vote of confidence in the firm and its business model noting that the investment will go a great way in significantly scaling up the business of the firm.

“The move provides independent market validation of the attractiveness of the firm’s model, demonstrates the depth of investor interest, and helps in strengthening market confidence of the business model,” he added.

Under the agreement, Centum will control the timing and maximum size of the funds with no limited obligation.

GEM, the USD3.4 bn firm has previously provided equity investment in various projects, managing a diverse set of investment vehicles focused on emerging markets across the world.

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