Co-operative Bank is lending Centum Investments Sh2 billion loan to build apartments at the firm’s Two Rivers land.
In a report by Centum, the loan agreement was signed by Centum’s subsidiary Uhuru Heights Limited.
“Co-operative Bank of Kenya approved a Sh2 billion project finance facility during the year. The facility is earmarked for the completion of the Cascadia Apartments being developed by Uhuru Heights Limited,” Centum says in its latest annual report.
Uhuru Heights will build one, two and three-bedroom apartments that are being sold at between Sh8.5 million and Sh24.5 million.
The loan has a maturity period of three years and an effective interest rate of 11.6 per cent.
Co-op Bank has already disbursed Sh. 137.1 million. The loan is secured by the collections from the sale of apartments and the project itself.
“For investors, Cascadia Apartments offers competitive entry prices into the Two Rivers mixed use community. This ensures compelling rental yields with reliable capital appreciation driven by an experienced urban management team,” said Centum.
In 2019, Centum repaid a Sh8 billion loan it took from Co-operative Bank to develop the Two Rivers Mall in Nairobi.
The firm used a new loan from South Africa’s Standard Bank to retire the Co-op Bank debt.
Co-op Bank had funded Two River’s administrators, Two Rivers Lifestyle Company Sh1 billion to buy the 100 acres for the mall.
When the construction phase kicked off, Co-op Bank extended another loan of Sh8.24 billion to the project.