Fusion Capital pays financiers after Athi River homes sale homes
Fusion Capital chief executive Luke Kinoti. PHOTO | FILE
Fusion Capital has completed the sale of its 80-unit middle-income housing project in Athi River and paid back the financiers of the construction loan.
The PE fund said Wednesday its investors had doubled their investment through returns from the sale of the Graceland Athi River housing project, whose cost was Sh600 million.
The project which kicked off in 2008 was a joint venture between Fusion and Hand in Hand Group, a firm specialising in construction and farming.
“The three-bedroom houses, each with a separate servant’s quarter were offered for sale at escalating prices through the construction period, with the last houses being sold for around Sh11 million each,” said Fusion in a statement.
“The investment involved an equity-like structure, involving redemption linked to house sales.
“The bond was for a seven-year period, but Fusion Capital has been able to exit two years early.”
Fusion has 13 real estate projects in Kenya, Rwanda and Uganda, and has recently received approval to issue two Development Real Estate Investment Trusts (D-Reit) — one commercial and the other residential — that will raise a maximum of Sh7.4 billion for commercial and residential property development.
Part of the proceeds will go towards the Sh3.7 billion Meru Greenwood City development which will comprise a shopping mall, office block and apartments.
The commercial D-Reit will retail at Sh17 a unit targeting a minimum of Sh1.15 billion and a maximum Sh2.3 billion, while the residential D-Reit will carry a nominal value of Sh23 targeting between Sh2.58 billion and Sh5.16 billion.
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