Investment firm Centum is in talks with several investors to sell a stake in Two Rivers Development Limited (TRDL) in a bid to reduce its debt burden, CEO James Mworia has revealed.
The CEO did not however disclose the size of stake they are looking to sell, and the amount they hope to raise from the transaction. The sale could be in form of a straight equity sale or a convertible instrument, depending on the agreement with potential investors and the valuation.
“There is investor interest in TRDL because the development rights in the company is entirely serviced with infrastructure and we have been able to validate three different development models ranging from high-end, medium-income and affordable housing,” said Mr Mworia.
“We are engaging with several investors and will hopefully close soon. The target holding post-deal depends on the valuation we agree on and structure, which might either come in as straight equity or a convertible facility. In the next three or four months, we should have a signed agreement.”
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Centum currently owns 58 percent of TRDL, while AVIC International holds 39 percent. The Kenya Development Corporation holds three percent stake.
On the other hand, TRDL holds 50 percent stake in Two Rivers Lifestyle Centre, which owns the mall and office tower, while Old Mutual Properties owns the remaining 50 percent.
At least $96 million (Ksh10.89 billion) was borrowed during the construction of the shopping and office complex, an amount that has been reduced to Ksh4.5 billion.
Centum has been mulling of converting the debt to security that will see the lender earn dividends and get a share of the shopping complex if the owners decide to sell it.
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