Centum Real Estate, the development subsidiary of Centum Investments has signed a $20 mn long-term financing deal with the International Finance Corporation (IFC). This comes as a response to IFC’s funding proposal made to the developer in September 2023, to support the development of affordable housing units in Two Rivers. As such, the $20 mn loan is expected to support the construction of the firm’s Mzizi Court project worth $91 mn. The remaining $71 mn is funded internally by Centum RE through equity, deposits, and profits from completed units.

 

Mzizi Court is an affordable housing project in Two Rivers, whose construction commenced in 2022. Centum is planning to build a total of 1,940 units under the edge certified project in phases. Notably, phase one of the project comprising 301 units is expected to be completed in July 2024.

Mzizi Court, Two Rivers 

Source: Estate Intel    

 

Given that financing is a major factor hampering the optimum progress of the affordable housing initiative in Kenya, IFC’s funding boost is key to accelerating the construction and completion of the aforementioned project. Moreover, it aligns with the government’s housing initiative aimed at bridging the 2.0 mn housing gap in the country, and growing by 200,000 p.a.

 

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