Property firm eyes slice of oil, gas sector
PHOTO | SALATON NJAU (L to R) Capital Markets Authority (CMA) Chairman Kung'u Gatabaki, Nairobi Securities Exchange (NSE) chairman Eddy Njoroge, Vision 2030 Secretariat Director General Mugo Kibati and Home Africa chairman Lee Karuri during the bell ringing ceremony which marked the company’s debut on the NSE Growth Enterprise Market Segment (GEMS) at the Stanley Hotel on July 15, 2013.
What you need to know:
- Investors gave the company nod to establish a Sh10 billion fund to finance expansion
Real estate developer Home Afrika plans to invest in the oil and gas sector as it seeks to diversify its business and increase presence in Africa.
Shareholders of the listed property developer at the weekend approved the formation of a subsidiary company through which the firm will participate in other investments outside the real estate sector.
“The shareholders equally gave approval for the formation of a company known as Investor Afrika Limited which will engage in global business in among other areas banking, insurance, mining, energy, oil & gas, telecommunication and agriculture as part of its future diversification plans,” read part of the brief from the AGM.
Mid this month, the company became the first firm in Kenya to list on the Nairobi Securities Exchange’s growth enterprise market segment.
Africa plan
At the AGM, shareholders also approved the company’s plan to establish a Sh10 billion consolidated fund that will finance Home Afrika’s expansion in Africa.
The shareholders also agreed to raise funds for the company’s future projects through Real Estate Investments Trusts (REITs), a new product that is yet to be introduced on the stock market.
“We are in consultation with our investment bankers, legal advisors and other stakeholders on the creation of two REITs that will accelerate our expansion into Africa,” said Gerald Chege, the CEO of Home Afrika.
