Fusion Capital will use cash raised from its recently approved development real estate investment trust (D-Reit) to put up a Sh3.7 billion mixed use project in Meru.
The private equity firm said the Sh3.7 billion Greenwood City comprising a shopping mall, office block and apartments will be developed and sold within 36 months at an unspecified return to investors.
“Meru is currently under-served with similar developments. Greenwood City was conceptualised to meet this need,” said Luke Kinoti, the chief executive of Fusion Capital.
Fusion received regulatory approval last month to raise a maximum of Sh7.4 billion to be split between commercial and residential developments.
The commercial D-Reit will retail at Sh17 a unit with a target of raising a minimum of Sh1.15 billion and a maximum of Sh2.3 billion.
The residential D-Reit has separately been approved to issue and list new units of a minimum of Sh2.58 billion and a maximum of Sh5.16 billion. A unit of the residential D-Reit has a nominal value of Sh23.
The offer is restricted to professional investors who are able to evaluate the level of risk they are taking when they buy into the project. The investors will put in a minimum of Sh5 million.