NAIROBI, Kenya, Nov 14 – Pan-African housing financier Shelter Afrique has approved a Sh1.6 billion loan to a Lagos-based real estate firm for three housing projects.
The 5-year facility with a moratorium of 24 months will fund Mixta Real Estate PLC current real estate projects in Côte d’Ivoire, Senegal and Morocco.
The facility will co-finance the construction of 356 housing units in Côte d’Ivoire, 162 units in Senegal, and 371 units in Morocco, with selling prices varying from Sh3.1 million ($26,000) in Morocco, Sh5.5 million ($45,000) in Ivory Coast, and between Sh4.4 million to Sh6.3 million ($36,000 and $52,000) in Senegal.
Speaking in Nairobi at a signing ceremony, Shelter Afrique Ag. Managing Director Kingsley Muwowo lauded the strong and long-term relationship between the two institutions, adding that, “In Mixta Africa, Shelter Afrique has a reliable partner that shares a common goal of developing affordable housing across Africa.”
“We have therefore structured both the Naira and Dollar denominated credit facilities to support their real estate projects. The Naira loans which is supported by the First series of the ₦500 billion bond which raised ₦46 billion, will support Mixta Africa’s projects in Nigeria to guards against forex risks,” Muwowo said.
The housing financier has been increasing its investment in the African most populous Country with over 200 million population, to bridge housing deficit.
Shelter is owned by African Development Bank, the African Solidarity Fund, African Reinsurance Corporation as well as 44-African nations.
“If shelter Afrique came to us with a Dollar proposition, we would have said no, as our past Dollars transaction had its own share of forex challenges,” Mixta Africa Executive Director and Chief Financial Officer Benson Ajayi said.
“We are, however, confident that the dollar-denominated facility being extended to us by shelter Afrique to finance projects in Morocco, Senegal and Côte d’Ivoire will not suffer much forex shocks,” Ajayi said.
