Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The Orbit facility is situated on Mombasa Road,

Africa

London-listed firm secures USD 31.5 mn to acquire Kenyan firm

NAIROBI, Kenya, October 13 – London-listed Grit Real Estate income group limited has secured funding of USD 31.5 million for the acquisition, expansion, and redevelopment of the Orbit Africa warehousing and manufacturing facility in Nairobi, Kenya.

The funding was secured from Mezzanine Partners GP Proprietary Limited and BluePeak Private Capital with backing from an IFC debt facility.

“The total purchase consideration of USD 53.6 million will be settled by way of USD 25 million in senior debt finance negotiated with the International Finance Corporation, a member of the World Bank Group, and USD 28.6 million through the perpetual note issuance,” a statement issued read.

The firm, while announcing the issuance of the note, said that the fundraising is conditional upon certain remaining conditions precedent which is expected to be fulfilled in the near future.

GRIT CEO Bronwyn Knight noted that the investment and redevelopment project will not only be accretive to shareholders but also create long-lasting positive social, economic, and environmental benefits for local communities.

In his remarks, Olaf Schmidt, IFC’s Manager for real estate, hotel and retail, health and education, and manufacturing investments in Africa said the loan will help to further develop vital manufacturing infrastructure in Kenya.

“ It is important for IFC that its financing will strengthen the involvement of Grit, a successful pan-African player specialized in attracting financing from international markets by using efficient and internationally-proven business models for the development and improvement of industrial and logistics properties,” Schmidt said.

The Orbit transaction initially comprises the acquisition, on a sale and leaseback basis, of an existing warehouse and manufacturing facility.

The facility will be leased back to Orbit Products Africa Limited (OPAL) on a new 25-year US dollar-denominated triple net lease, with an option to extend the lease term for a further 10 years.

Advertisement. Scroll to continue reading.

Sachen Chandaria, Executive Director of OPAL added that the strategic partnership with Grit will position Orbit for expansion and for product and category extensions to better service.

“This innovative sale and leaseback transaction is amongst the largest across the sub-continent, with the strategic partnership with Grit representing a significant long-term undertaking by Orbit and reaffirms our commitment to Kenya and the region. Proceeds from the transaction will substantially further strengthen our balance sheet,” Chandaria said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...