NCBA Bank Kenya has lent an additional $6.8 million (Sh1 billion) to Mauritius-based real estate firm Grit Services Limited in the year ended June.
The dollar-denominated credit facilities rose to $17.5 million (Sh2.6 billion) in the review period, from $10.7 million (Sh1.6 billion) a year earlier.
The loans, which are priced based on transactions in the US treasuries market, have an interest rate of 11.84 percent and are due in January 2024.
The borrowings have been disclosed by Grit’s parent firm –Grit Real Estate Income Group— which has been expanding its investments in Kenya and other regional markets’ property sector.
Grit Services is the main subsidiary of the multinational whose assets in Kenya include Naivasha’s Buffalo Mall, the US embassy’s gated estate in Nairobi, Imperial Warehouse and Orbit Africa’s manufacturing facilities. The property investor has a Revolving Credit Facility (RFC) with NCBA, allowing it to borrow, repay and borrow again on a rolling basis.
In the months after June, Grit continued to draw on the facility. “Grit Services Limited drew an additional $3.984 million from NCBA Bank Kenya. Grit Services Limited drew on the existing NCBA RCF facility amounting to US$8 million in October 2023,” the firm said of the borrowing.
The borrowings from NCBA accounted for 3.83 percent of Grit’s total debt in the year ended June, rising from 2.27 percent a year earlier. Grit, whose main financier is South Africa’s Standard Bank Group, has been diversifying its banking relationships.
The NCBA loans are secured by Grit’s properties in Kenya.
Grit recently opened a new representative office in Kenya as it pursues growth in the country. Through its subsidiary Gateway Real Estate Africa, the multinational is currently building a five-storey office tower dubbed Eneo in Tatu City.
The building, dubbed Eneo, is expected to be completed in the second quarter of next year and will be leased out to CCI which is an international contact centre operator.
Grit also recently took full ownership of Buffalo Mall after buying the 50 percent stake it did not already own.
Besides NCBA, Grit also has credit facilities from Housing Finance Corporation which it owes $4.3 million (Sh660 million). Housing Finance provided the funds for the construction of the Buffalo Mall which is now a subsidiary fully controlled by the multinational.
