Centum Real Estate has signed an agreement to raise $150 million through a share subscription facility with GEM Global Yield LLC SCS (GEM).
GEM is a $3.4 billion alternative investment group with operations in Paris, New York, and the Bahamas. It manages a diverse set of investment vehicles focused on emerging markets across the world.
“Centum Real Estate is pleased to announce that it has signed an agreement with GEM Global Yield LLC SCS, the Luxembourg based private alternative investment group, to provide Centum Real Estate with a share subscription facility of up to $150 million for a 36-month term following a public listing,” the company said in an announcement.
The share subscription facility 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.
Dr James Mworia, the Managing Director of Centum PLC noted, “The commitment by GEM is a major vote of confidence in Centum Real Estate and its business model and this investment will go a great way in significantly scaling up the business of Centum Real Estate.
He added, “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. We are quite pleased with this development and look forward to attracting even more investors into Centum Real Estate”.
Centum Real Estate says it is currently 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.
“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 real estate developers,” it added.
Some of Centum’s ongoing real estate projects include the Riverbank apartments and the Loft Residences within the Two Rivers complex and the luxurious Awali Estate villas and 1255-Palm Ridge apartments in the Coastal Vipingo Development Limited.
It earned $9.7 million in revenue from the sale of houses in the six months ended September 2021.