NAIROBI, Kenya
Shareholders of Home Afrika, the newly listed property developer, have approved the establishment a Ksh10 billion consolidated fund to finance its projects and expansion into the African continent. During the company’s fifth Annual General Meeting held at Migaa Estate in Kiambu, the shareholders passed a raft of resolutions that have paved way for an ambitious expansion plan.
These included the appointment of George Rubagumya as a director of Home Afrika International, a subsidiary of Home Afrika Ltd. Mr Rubagumya has been instrumental in sealing the Shelter Afrique-Home Afrika memorandum of understanding that will see the two organisations pursue an ambitious strategy of building one million homes in Africa in the next 10 years. The shareholders also agreed to raise funds for Home Afrika future projects through Real Estate investment Trusts (REITS) and other avenues available in the capital markets.
“We are in consultation with our investment bankers, legal advisors and other stakeholders on the creation of two REITs that will accelerate our expansion into Africa,” said Gerald Chege, the Executive Officer of Home Afrika. ”One will be a development REIT, comprising various Home Afrika projects, to be listed on the Nairobi Securities Exchange which will be undertaken immediately and the other will be an investment REIT probably in the next five years.”
REITs are publicly traded entities that build or invest in property and are exempt from corporate taxes. Lee Karuri, the Chairman of Home Afrika said the newly listed company was also exploring other capital raising avenues, among them an Initial Public Offering as well as issuing commercial papers and bonds raise funds for expansion.
The shareholders also approved other long-term projects such as the purchase of 100 acres for Home Afrika Techno and Home Afrika Resource Centre. Home Afrika Techno will be a 360 degrees industrial park offering innovative building and construction solutions while the resource Centre will be a fully-fledged building and construction university to advance knowledge in the sector.
The shareholders equally gave approval for the formation of a company known as Investor Afrika Ltd which will engage in global business in among other areas banking, insurance, mining, energy, oil & gas, telecommunication and agriculture as part of it future diversification plans. Home Afrika Limited is currently involved in three projects valued at over KSh10 billion and is focusing on undertaking about 10 projects as part of its five-year strategic plan. Its growth plan seeks to achieve its strategic objective of attaining a project turnover of US$ 1.0 billion within the next five years.
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