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Shelter Afrique recovers Sh687m in troubled Kenyan housing projects

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Shelter Afrique headquarters in Upper Hill, Nairobi. PHOTO | POOL

Pan-African housing financier Shelter Afrique recovered Sh687.19 million in various troubled real estate projects in Kenya in the year ended December 2021.

The financier revealed in its latest annual report that it repossessed collaterals comprising 11 apartments in Eden Beach Resort & Spa in Mombasa, 15 houses in unnamed local projects as well as vacant land in Athi River all worth Sh533.7 million.

The financier said it also recovered Sh153.49 million from the Kenyan developer of the Spring Green project in Kenya where it invested Sh487.8 million.

Shelter Afrique has in recent years put in place an aggressive strategy for recovery of the mounting non-performing loans.

“The profit was mainly attributed to impairment recoveries of $2.53 million, mostly made up of $1.29 million recovery from a $4.1 million receipt from the Spring Green project in Kenya,” said Shelter Afrique acting chief financial officer Beatrice Mburu in the report.

“In 2021, the management sustained the recoveries efforts anchored in the board-approved non-performing loans management strategy 2020-2023,” said the manager in charge of special operations unit Macharia Kihuro.

“Management through the special operations unit has continuously and regularly reviewed the success and effectiveness of the NPLs’ management strategies.”

Shelter Afrique halted a Sh550 million loan to a Nairobi-based developer for a 240-apartment residential development in Ruaka, Kiambu County, leaving home buyers fretting over the future of the project.

“In 2018, Glenwood Garden Project was fully impaired,” said Shelter Afrique with its books indicating it impaired Sh105.2 million last year related to the project.

Shelter Afrique’s Everest Park Project was built on an expansive estate in Athi River, and also faced woes.

The project comprised 120 one-bedroomed units that were priced at Sh2.6 million each, 60 two-bedroom units at Sh4.5 million each, and 60 three-bedroom units sold at Sh5.5 million each.

“As of 31 December 2021, the directors have assessed the investment to be recoverable despite the impact of Covid-19 on the real estate market. The directors continue to assess the evolving impact of the Covid-19 pandemic on the industry,” said Shelter Afrique.

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