NAIROBI, Kenya, Jan 14 – Old Mutual’s property division has invested Sh6.4billion in the Two Rivers Lifestyle Centre (TRLC), the holding company for the Two Rivers Mall, in a landmark deal that was arranged by Nabo Capital.
The transaction implies a total asset valuation for the mall of approximately Sh23 billion.
The division, Old Mutual Property (OMP), has made the investment via a subscription for a 10 percent shareholding of TRLC in newly issued stock and a loan that is convertible into an additional 40 percent shareholding, subject to the Competition Authority’s approval.
The transaction will see OMP ultimately hold a 50 percent stake in TRLC.
This investment will enable the Two Rivers Mall deliver a retail, entertainment and lifestyle experience that is unprecedented in the region.
“This deal is a very important affirmation of the investment-grade quality of the Two Rivers Mall. A private transaction of this magnitude by a reputable international investor of OMP’s stature is also a firm vote of confidence in Kenya and the region as an investment destination,” Nabo Capital Managing Director Pius Muchiri stated.
The Two Rivers Mall, sitting on 10.2 acres, is part of the larger 102 acre master-planned Two Rivers Development.
The development constitutes 851,000m(sq) of bulk space and is destined to be a world-class destination.
It includes a 3-star hotel being undertaken by City Lodge Hotel, an office building developed by Victoria Commercial Bank, a 5-star hotel and residential apartments that are in various stages of development.
Two Rivers Development Limited (TRDL) has been the sole shareholder of TRLC and is destined to be Africa’s Pre-eminent destination.
The shareholding in TRDL will remain unchanged post this investment by Old Mutual with Centum continuing to hold a controlling stake in TRDL of 58 percent, AVIC 38 percent and the balance held by ICDC.
“The Two Rivers Mall fits in well with the Old Mutual Group’s strategy of investing in high quality retail focused assets in East Africa and reinforces our commitment and investment in Kenya,” CEO of UAP Old Mutual in East Africa Peter Mwangi said.
The Two Rivers Mall is set to be the first regional mall in East Africa with 66,000m(sq) of retail space and 22,000m(sq) of office space.
At this size, it will be the largest multi-purpose centre in Africa outside South Africa.