Centum Investments Plc has shelved plans to dilute its stake in its real estate subsidiary Two Rivers Development Ltd (TRDL) following gazettement as a special economic zone (SEZ).
Centum holds a 58 percent stake in TRDL, which in turn holds a 50 percent stake in Two Rivers Lifestyle Centre Ltd, popularly known as the Two Rivers Mall.
TRDL reported a Sh2 billion loss in the year ended March 2022, with the sagging performance attributed to the high level of finance costs incurred by the business. In this period, the subsidiary inked a deal with Standard Bank converting a portion of its debt into a convertible instrument allowing the creditor to consider taking up an equity stake in future.
“TRDL was seeking a strategic partner and a way to address the balance sheet challenges it was facing. We have acquired the asset from TRDL and through that acquisition we have now pivoted into setting it up as a Special Economic Zone. So, we have addressed the issues that TRDL had and as Centum we now have this business line,” Centum CEO James Mworia told the Business Daily.
On June 13, through Legal Notice 76 of 2023, Trade and Investments Cabinet Secretary Moses Kuria gazetted LR No.22/365 measuring approximately 64 acres as a Special Economic Zone providing for the establishment of Two Rivers International Financial Centre where Centum PLC hopes to attract international service companies seeking a foothold in Kenya with eyes on Africa.
“What TRDL wanted was someone to invest in its assets and we saw an opportunity in acquiring this particular asset and using it to create an international financial centre,” Mr Mworia said.
“Dubai International Financial Centre is just about the same size as Two Rivers and here we have an opportunity to develop about a million square metres of development and we have an opportunity where companies can use this as a platform to offshore their jobs. So, we have re-imagined our business within the prevailing environment,” he added.
