UGANDA, Kampala | Real Muloodi News | Centum Real Estate Ltd has announced plans to sell part of its shareholdings. Centum Real Estate, the property development subsidiary of Centum Investment Company Plc., commonly referred to as Centum, is a public East African investment company listed on both the Nairobi and Uganda Securities Exchange.
While announcing the proposed transaction, James Mworia, Chief Executive of Centum Real Estate Limited, explained, “We are open to selling part or all of our stake in Centum RE. We are doing this to rebalance our portfolio, which is currently concentrated in real estate.” “The money raised will be reinvested in marketable securities (stocks and bonds) and private equity to reach our allocation target in these two segments.”
The proposed sale of Centum RE speaks to the company’s sureness of better economic performance compared to last year when it suspended asset disposals as the pandemic hit. The major Nairobi Securities Exchange-listed firms can expect major capital gains from the proposed sale of Centrum RE.
Centum holds an excellent record so far, and they still own Two Rivers Development Limited TRDL and a stake in Nairobi’s Two Rivers Mall.
In Uganda, Centum Real Estate holds 256 Bella Vista Apartments, Mirabella Residences and Riviera Town House.
The company has merged its real estate ventures into Centum RE, including land and developing properties in Uganda, Kilifi, and Nairobi in Kenya.
“We have gone above the target not because of increased investment in real estate but because of the gains in the land and properties,” Mr Mworia said.
The sale value of the subsidiary is at USh 16.6 billion. The company invested USh7.8 billion in developing and acquiring assets building up its portfolio.
According to Centum’s annual report, “This business is on track to making additional distributions in the year to March 2022 on the back of a robust sales pipeline for both residential projects and development rights and is well-positioned for an exit.”
Centum observes the real estate subsidiary, which expects to bring in additional payments, predicted at USh1 billion from the unit’s sale of USh2 billion worth of development rights to third parties.
However, Centum’s private equity and marketable securities allocation stood at 20.5 per cent and 16 per cent, behind the target of 40 per cent and 20 per cent, respectively.
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