TransCentury plans sale of Sh1bn properties in Kenya and Uganda


Transcentury CEO, Nganga Njiinu at a past event. FILE PHOTO | DIANA NGILA | NMG

Investment firm TransCentury plans to dispose of properties worth Sh1.1 billion in Mombasa and Uganda as part of its efforts to improve its cash flow position from the sale of non-core assets.

This marks the latest sale of such assets, with the company having previously put several properties on the market including leased residential houses in Nairobi’s Lavington estate and Dar es Salaam in 2019.

“The group is in the process of disposing of some of its non-operating assets to generate operating cash flows,” the company said in an information memorandum published in connection with its ongoing rights issues that seek to raise Sh2 billion.

Read: TransCentury renegotiates Sh5bn loans after default

The investment firm plans to sell a property in Mombasa worth Sh700 million and one in Uganda worth Sh400 million.

The company has completed the valuation of the Mombasa asset and is awaiting takers. No offer has been received for the Uganda asset.

TransCentury is yet to sell most of the properties it put on the market over the past few years, indicating a lack of demand or an offer acceptable to the company.

They include a property in Lavington and buildings in Zambia’s Light Industrial Area which were last valued at Sh107 million and Sh14.1 million respectively.

The company has in recent years generated most of its cash from financing activities rather than operations.

The asset sale and the rights issue are expected to boost its cash flow and working capital, enabling it to undertake projects it says it has already signed up for.

TransCentury’s primary focus is on infrastructure development, offering civil and mechanical engineering, and transportation.

Its subsidiaries include East African Cables, Tanelec Limited, Civicon Africa Group Limited and Cable Holdings Limited.

Its clients include governments, private firms and households.

The company said the proceeds of the rights issue will be applied towards settling debts owed to creditors, repaying part of the holding company debt owed to lenders and in return unlocking additional working capital financing for the group and its subsidiary businesses.

Read: TransCentury extends Sh2 billion cash call to February 3

The cash call has been extended to February 3 from the initial close of Monday, indicating that the company was yet to hit its target of raising Sh2 billion from shareholders.

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