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Co-op Bank lends Centum Ksh2 billion for Apartments

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Co-op Bank lends Centum Ksh2 billion for Apartments

Co-op Bank lends Centum Ksh2 billion for Apartments

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 Centum is receiving  Ksh2 billion loan from the Co-op Bank to finance the investment firm’s construction of apartments at its Two Rivers site in Nairobi.

  According to Centum in its latest annual report, the loan agreement was signed by Centum’s, Uhuru Heights Limited which is building one, two, and three-bedroom apartments.

The apartments are being sold between Ksh8.5 million and Ksh24.5 million.

The three-year loan has an effective interest rate of 11.6 percent and a four percent margin on the Central Bank Rate (CBR).

The CBR currently stands at seven percent.

The lender has already disbursed Ksh137.1 million.

Further,  Centum says the loan is secured by the collections from the sale of apartments and the project itself.

The apartments target buyers seeking luxury accommodation at the Two Rivers complex which has a shopping mall, hotel, and restaurants.

As well as other amenities.

Additionally,  Centum says the apartments are also suitable for investors who stand to benefit from rental income and capital appreciation.

This ensures compelling rental yields with reliable capital appreciation driven by an experienced urban management team.

Centum said.

Nonetheless, the firm took a Ksh8 billion loan from the bank as part of the funds it mobilized to develop the Two Rivers Mall.

Centum repaid the loan last year using a new credit facility from South Africa’s Standard Bank in a bid to lower its finance costs.