Centum Investments Plc has announced that it has reorganized its real estate unit into two distinct business units. The company revealed this in its latest published half-year financial results for the year ended September 30.
The reorganization has separated Centum Real Estate Limited which is now a wholly-owned subsidiary and the holding company for all wholly-owned real estate businesses, and Two Rivers Development Limited of which the whole company holds a 58% stake.
The company said Centum Real Estate Limited is pursuing a sales-led development model and is currently constructing 1482 residential units across three sites in Nairobi, Kilifi and Uganda.
Furthermore, the company stated that it had achieved a pre-sale level of 73 percent or 1086 units of the 1482 units under construction as of 30 September 2020.
This represents Ksh. 9.2 billion and the business has collected over Ksh. 2.6 billion for the presold units with a collectible of Ksh. 6.6 billion.
According to the financial statements from Centum Investments, Centum Real Estate has recorded Ksh. 1.7 billion in pre-sales and collected Ksh. 650 million over the Covid-19 period.
Centum Investments also said the real estate company is currently underleveraged with an asset to debt ratio of 7.9X. The company is in the process of issuing a Ksh. 4 billion bond to finance the construction of its projects.
Centum real estate expects to receive Ksh. 3 billion to be reflected in its financial statements for the year ending 31 March 2021, for ongoing land sale transactions.