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Houses builder Kings Pride seeks Sh45bn from US equity firm

Kings Properties CEO Maj (Rtd) David Karau at his office. PHOTO | DIANA NGILA | NMG
Kings Properties CEO Maj (Rtd) David Karau at his office. PHOTO | DIANA NGILA | NMG 

One of Kenya’s largest real estate firm Kings Pride Properties has opened talks with an American company for a Sh45 billion equity-cum-debt injection.

Group chief executive Major (Rtd) David Karau and director George Fundi who returned from the US yesterday confirmed signing a financing term sheet with the New York-based private equity firm, Milost Global Incorporated last Friday.

Milost, which confirmed the plan on its website, manages about Sh2.5 trillion.

It usually targets majority stake buyouts in firms dealing in technology, transport, education, distribution, mining, financial services, healthcare, pharmaceuticals, real estate, alternative energy, infrastructure development, oil and gas.

“It is too early to discuss the contents of the deal that is at the onset,” said Mr Fundi.

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Once the deal is finalised, Milocast will invest Sh15 billion in equity while the rest will be a debt to fund various Kings Pride projects currently under execution.

Mr Karau described the deal as the best solution saying Kenya’s real estate sector had suffered major setbacks due to unavailable of credit that made development loans costly forcing developers to pass on the same to house buyers.

Milost Africa president and senior Partner Solly Asibey said they were convinced the Kenyan firm’s portfolio was a good investment. Its global president Bernard Yaw said Kenya’s consistently solid GDP growth of 5.3 per cent to 5.9 per cent for the last six years as well as increased foreign direct investments confirmed Kenya was too ‘attractive’ a market to ignore.

The two executives noted the 1.8 million housing deficit presented Kings Pride with a huge market adding they would make Kenya the regional hub as they plan to expand to other markets.

Kings Pride has built 500 housing units to date, mainly targeting high-end clients.

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