Fusion Capital Limited has raised over Sh800 Million towards completion of Greenwood City Mall, in Meru County.
The private equity fund had previously structured the financing of the mall as a Development Real Estate Investment Trust (D-Reit) which achieved a 38 per cent subscription against the set threshold of 50 per cent subscription.
The project shareholders therefore dropped the DREIT in favor of private funding for the development.
The Sh800million therefore is a follow-on investment from the original investment of about $4.3 million hence total funding of about $12 million(Sh1.2billion).
The construction of the mall has now fully been funded privately by investors from United Kingdom and Finland as well as local land partners.
“We have a first mover advantage in Meru and hence the decision to proceed with the circa 12,000 sqm shopping mall which we believe is going to be a destination mall for the towns surrounding Meru and for the Mt. Kenya East region,” said Fusion Group’s Chief Executive, Daniel Kamau.
Fusion Investment Management, a subsidiary of Fusion Group that manages both local and international funds raised this funding of the mall purely through an equity arrangement, thereby de-risking the investment, making it safe for shareholders to hold it in the short and long term.
Meru County Government CEC for Trade, Investment, Industrialization, Tourism, and Cooperatives, Maingi Mugambi reiterated on the need for companies to tap into the opportunities that are available in counties in order to achieve equitable growth across the country.
“As a county government, we have created an enabling environment for commercial and residential real estate investment which is adequately complemented by surrounding infrastructure such as the planned LAPSSET corridor project which traverses the county,” said the CEC.
Meru Greenwood City Mall is part of a mixed use development complex offering retail spaces, banking halls, eateries, play spaces, and office spaces strategically located at the edge of Meru Town. The mall is already at 36 per cent occupancy.
