UK-based multinational Old Mutual has invested Sh6.4 billion in the holding company of Centum’s Two Rivers Mall, giving it an equivalent 50 per cent stake in the firm.
The multinational has taken a 10 per cent stake in Two Rivers Lifestyle Centre Limited (TRLC) in exchange for cash and has also made a convertible loan to the company that could later be turned into an extra 40 per cent equity ownership.
“The transaction will see Old Mutual ultimately hold a 50 per cent stake in TRLC,” Centum said in a statement.
The deal is subject to approval by the Competition Authority of Kenya. New shares were issued to accommodate the investment by Old Mutual, through its subsidiary Old Mutual Property.
The mall is part of the Two Rivers complex that sits on a 100-acre property along Limuru Road, in close proximity to the affluent neighbourhoods of Runda, Nyari, Gigiri and Muthaiga.
The first phase will see the construction of two office towers, a hotel, and the mall among other units.