Centum Real estate has experienced a surge in unit sales, with investors opting for house units as part of their payment for the corporate bond.
Kenneth Mbae, the managing director of Centum Real estate, revealed that about KES 600.0 million of the bond was settled by investors taking units at the firms’ River Bank and Loft Residences projects.
This move follows Centum’s early payment of its KES 3.0 billion corporate bond, emphasizing the company’s robust liquidity and financial position. The recent credit rating upgrade by Global Credit Rating (GCR), citing strong cash flows, further supports Centum RE’s financial standing.
“Providing investors with both cash and property options, Centum Real estate witnessed KES 600.0 million worth of units chosen by investors, with the remaining KES 2.3 billion settled through the cash option,” he said.
Centum real estate, a leading mixed-use property developer in the region, boasts projects in Nairobi, Kilifi, and Entebbe. The Riverbank apartments offer one, two, and three-bedroom units priced between KES 15.0 to 28.0 million, while Loft Residences feature four-bedroom duplexes at Two Rivers Mall retailing at KES 37.5 million.
Mr. Mbae stated that Centum RE had consolidated sufficient resources, eliminating the need for investors to wait until maturity. Group CEO James Mworia highlighted that this early payment initiative aims to enhance investors’ confidence and streamline future borrowing for the company. Investors received their payments three weeks ahead of the December 16th, 2023, maturity date.
Centum, rebounding with a net profit of KES 174.0 million for the financial year ending March 2023, initially borrowed in 2020 to fund its substantial housing projects, channeling deposits into a sinking fund.
