Home Afrika to raise cash through bonds

Property developer Home Afrika plans to issue corporate bonds to raise money to finance a majority of its planned projects.

In an interview with Nation, company chief executive Njoroge Ng’ang’a said they plan to mobilise funds to complete projects such as the multi-billion Migaa City that have taken long to execute.

“We are also going to look at the real estate investment trusts once the entire legislation is completed and see how we can also introduce new shareholders into the project to speed up the turnaround time,” said Mr Ng’ang’a.

He did not, however, disclose the exact amount of money that the firm is looking to raise though they have submitted their proposal to the Capital Markets Authority (CMA) for approval. He said the Migaa project, a flagship real estate investment, requires at least Sh2.5 billion in the next three years to complete the necessary infrastructure and other developments on the ground and provision of other services.

The Lake View project in Kisumu, which was launched in March this year, would on the hand require about Sh1 billion in capital.

Additional funding

The Tiwi project in Kwale also requires additional funding running into hundreds of millions of shillings. The capital raising plan will be done several times over to cater for the needs of specific projects being undertaken.

The Migaa project has fallen behind schedule, with only a third of the work having been completed due to financing challenges which the company now seeks to overcome with money from the bond.

Located in Kiambu County, Migaa which was launched in 2010, sits on a 774 acre piece of land.

An 18-hole golf course, 4,000 homes, hotels, an office park, hospital, a commercial centre, education and recreation facilities are part of the projects planned in the Migaa project.