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Centum has received raised over KSh. 7.4 billion from one of South Africa’s largest commercial real estate financiers, Nedbank. The investment is geared towards the Two Rivers Development in Nairobi.

Nedbank Corporate and Investment Banking, property division, which controls a 40% market share of South Africa’s commercial real estate lending was the source of the funds.

The bank has said it played a major role in financing the 102-acre Two Rivers development where Centum holds a 58.3% stake in addition to a 50% shareholding in the Two Rivers Mall. Nedbank is the latest South African company to become involved in the Two Rivers development.

Another South African entity, Old Mutual Properties, is a joint shareholder with Centum in the 67,000 Two Rivers Mall, which is the core of the Two Rivers development plan. The flagship development was embraced by the Kenyan government and has earned its place as the largest shopping centre in sub-Saharan Africa outside of South Africa.

Nedbank CIB’s Africa divisional executive for property finance, Gerhard Zeelie, told Moneyweb that the bank’s total funding facilities to Centum Group exceed KSh. 7.4 billion.

“Nedbank provided the financing to consolidate Two Rivers’ debt facilities and is currently working on five deals with Centum, which includes developments in Kenya and Uganda. This is not Nedbank’s first property finance transaction in Kenya and we are busy with the final execution of several transactions well over $100 million (R1.4 billion). Most of the funding relates to projects in Nairobi although we are also implementing some transactions in Mombasa,” he said.

“Nedbank CIB’s property finance division has maintained a leading market share over many years in SA. We are focused on maintaining that position and on growing business in key African jurisdictions to ensure revenue growth and diversification. We are working with a number of clients, ranging from domestic corporates and developers to Pan-African investors, real estate investment trusts (Reits) and private equity funds,” he added.

The bank’s search for returns across Africa on the real estate financing follows in the footsteps other South African property companies including Hyprop, Attacq, Grit, Growthpoint Investec Properties and more.

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