CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
By Monica Muema
Fusion Capital Limited has raised over Sh 800 Million (USD 8 Million) towards completion of Greenwood City Mall, in Meru County.
Fusion had previously structured the financing of the mall as a Development Real Estate Investment Trust (D-Reit) which achieved a 38% subscription against the set threshold of 50% subscription, but the Shareholders of Meru Greenwood Park dropped the DREIT in favor of private funding for the development.
The construction of the mall has now fully been funded privately by investors from United Kingdom and Finland to a tune of USD. 8 Million of new cash as well as local land partners.
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.
“The intention is to exit when the income from the mall development has stabilized and can exit at between 8-10% capitalization rate,” said Michael Kimondo, Executive Director, Fusion Investment Management.
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. Meru County is in the Central Region of Kenya, and is home to a population of over 1.5 million people.
Meru shares its borders with five other counties: Isiolo to the North, Nyeri to the South West, Tharaka Nithi to the South West and Laikipia to the West making it an attractive business hub in the Mount Kenya region. The mall is expected to be a destination mall serving Meru and neighboring towns.