NAIROBI, Kenya, Aug 28 – Real estate firm Home Afrika is set to issue a Corporate Bond in the second half of 2014, as it seeks to access long term funds for injection into its projects.
Home Afrika Chief Executive Officer Njoroge Ng’ang’a says the public listed company is awaiting regulatory approvals to issue the bond.
“We have seen the bond market being extremely active during these last two quarters. We believe there is liquidity in the market and the costing is a lot more favourable; we are seeking for Sh1 billion and above,” he said.
Ng’ang’a said the company is shifting its focus from high end gated communities to develop middle income houses, especially in Machakos County due to its proximity to Nairobi where the firm targets to build over 1,000 residential houses on a 60-acre piece of land in Mavoko.
Other proposed developments include building about a 1,000 units middle income development in Migaa dubbed Olgellai Valley.
The firm is at the moment undertaking major property projects including the multi-billion shilling Migaa, a live-in-community in Kiambu County as well as developing Lakeview Heights in Kisumu County and Llango in Kwale County.
“Migaa project is at about 40 percent development stage with infrastructure works scheduled for completion in 2016 while the Lakeview Heights in Kisumu County is planned on a 92-acre plot where the company plans to develop up to 600 homes, 140 developed plots as well as a conferencing hotel expected to be complete in 2015,” he said.
The company posted a 72 percent drop in net profit to Sh42 million in the half year to June down from Sh155 million recorded in the same period in 2013 with administrative expenses increasing by 88 percent to Sh125 million from 66 million recorded same period last year.
However the firm grew its revenues to Sh550 million in the half year, compared to Sh486.6 million over a similar period in 2013.
The firm’s assets grew by 29 percent to Sh1.086 billion in the period under review from Sh839 million recorded in the same period last year.
“We were able to sustain our profit momentum in a challenging first half of 2014. We anticipate a significantly stronger HY2 as a result of the launch of two projects in Kwale and Kisumu,” he said.