Centum has announced it will be taking a Sh 2billion loan from the Co-op Bank to finance the investment firm’s construction of apartments at its Two Rivers site in Nairobi County.
This is the second significant credit facility Centum is receiving from Co-op Bank. The investment firm took a Sh8 billion loan from the bank as part of the funds it mobilised to develop the Two Rivers Mall.
The latest loan agreement was signed by Centum’s fully-owned subsidiary Uhuru Heights Limited which is building one, two and three-bedroom apartments that are being sold at between Sh8.5 million and Sh24.5 million.
Interest rate
“Co-operative Bank of Kenya approved a Sh2 billion project finance facility during the year. The facility is earmarked for the completion of the Cascadia Apartments being developed by Uhuru Heights Limited,” said Centum.
The three-year loan has an effective interest rate of 11.6%, including a 4% margin on the Central Bank Rate (CBR) which currently stands at 7%. Co-op Bank has already disbursed Sh137.1 million. The loan is secured by the collections from the sale of apartments and the project itself, Centum said.
The apartments target buyers seeking luxury accommodation at the Two Rivers complex which has a shopping mall, hotel, restaurants and other amenities. Centum says the apartments are also suitable for investors who stand to benefit from rental income and capital appreciation.
“For investors, Cascadia Apartments offers competitive entry prices into the Two Rivers mixed use community. This ensures compelling rental yields with reliable capital appreciation driven by an experienced urban management team,” the investment firm said.
