Centum Investments will make a handsome profit on the sale of its beverage firms, even as real estate continues to register gains for the company.
The two beverage firms are Almasi Beverages and Nairobi Bottlers Ltd.
Strikingly though is the fact that the original asset value as at the time of Centum gaining a stake in the two firms stood at a price 573% lower.
“The combined historical cost of the two assets is Ksh3.4 billion,” said Centum chief executive James Mworia in a commentary note.
Valued at Ksh16.8 million as at the end of March 2019, the investment firm’s beverage companies will now be sold to a Coca Cola Beverages Africa subsidiary for Ksh19.5 billion.
Mworia added that the transaction is expected to be completed by the end of the financial year in 2020.
“… the achieved exit valuation speaks to the success of our investment cycle and portfolio management strategy.”
Centum also said that the firm’s real estate continues to rake in gains, making up half of Centum’s portfolio.
“… our focus continues to be the monetisation of our landbanks through launching of in-fill development as well as sale of land and development rights,” said Mworia.
Centum is currently constructing 1,200 out of 3,000 units at first phase, attracting pre-sales of 51% (606 units) within 10 months.
Its Vipingo Development arm in Kilifi County has a total of 2,079 units in the pipeline for the firm’s two residential projects – Awali Estate and 1255 Palm Ridge.
Pearl Marina in Entebbe, Uganda has 1,063 units in the pipeline. Phase 1 is made up of 279 units of which 204 have been pre-sold, Centum said.
“We have so far pre-sold 204 units attracting Ksh1.8 billion in potential revenue,” the Centum CEO said.
At Two Rivers Development, the firm is carrying out market validation of Riverbank Apartments and Cascadia Apartments projects.
“To date we have pre-sold 15 units in Riverbank Apartments and 50 units in Cascadia Apartments attracting a range of Ksh1.3 – 1.4 billion in potential revenue,” Mworia’s commentary said.
Additionally, Centum said that the Two Rivers Mall is currently 81% let on gross lettable area and is projected to close the calendar year at 90% based on the pipeline of tenants.
New tenants that have signed on board include Millionaires Casino, Oca Decor, A1 Auto Garage, and Vita Foam.