NAIROBI, Kenya, July 2Centum Real Estate Limited reported consolidated profit of 650 million shillings for the year ended March 31, 2021, driven by residential unit profit, sales development rights and gains on investment properties.

Centum Real Estate defied the Covid-19 pandemic to record residential unit sales deposits of 1.8 billion shillings during the year, a 20% increase from 1.5 billion shillings registered the previous year.

In September 2020, Centum Investment Company reorganized its real estate business by consolidating all of its real estate assets, except for its 58% stake in Two Rivers Development Limited, under Centum Real Estate Limited as a holding company.

Centum Real Estate Limited is now the holding entity of four subsidiaries, namely Vipingo Development Limited, Centum Development Kenya Limited, Uhuru Heights Limited and Pearl Marina Estates Limited, domiciled in Uganda.

“The effect of the Covid-19 containment measures was an initial slowdown in home sales in the first quarter of the year and operational disruptions at some of our sites, notably in Uganda, but this has changed over the quarters following rates and our average monthly cash receipts. increased by 73% compared to the pre-Covid period, ”noted Centum Real Estate Managing Director Samuel Kariuki.

Centum Real Estate has completed the construction of two projects in Vipingo and Uganda, in addition to the launch of three new projects in Nairobi.

Two of the new projects have reached the pre-defined 30% market validation threshold and their construction has started.

In the sales-driven development model, Centum Real Estate seeks to pre-sell at least 30% of a project phase before starting.

Centum Real Estate had sold a total of 1,281 residential units for a total sale value of 11.5 billion shillings as of March 31, 2021, representing 63% of the total units completed, under construction or under market validation. .

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“These units sold have a potential profit of KES 2.2 billion, which is expected to be recognized gradually from the fiscal year ended March 31, 2022,” noted Kariuki.

Currently 3.7 billion shillings have been collected as cumulative deposits, 7.8 billion shillings representing cash owed on pre-sales.

The down payments received are recognized as deferred income in the balance sheet, the income being recognized in the income statement when construction is completed, the unit has been delivered to the purchaser and is fully paid.

“We expect the significant share of the KES 11.5 billion, as well as new sales from ongoing projects, to be recognized gradually over the next two fiscal years,” Kariuki added.

In December 2020, Centum Real Estate raised a zero coupon bond of 3 billion shillings at a yield of 12.5%, maturing in December 2023.

The bond proceeds were used for two projects in Nairobi, namely Riverbank Apartments and Loft Duplex.

The Riverbank Apartments are nearing completion this fiscal year while the Loft Duplexes will be completed next fiscal year. Both projects have a sale value of 3.4 billion shillings, of which units worth 1.9 billion shillings, representing 56% of the total salable units, have been sold.

Centum Real Estate has an approved pipeline of 4,528 housing units to be developed in Kenya and Uganda.

Of these, 96 have been completed and 1,952 more are under construction or market validation.

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“We are on track to complete construction of 524 housing units during the fiscal year ended March 31, 2022, and 1,426 more in the following fiscal year. The revenue potential of this total pipeline is 17.9 billion shillings, which is expected to be gradually reflected in our income statement from the fiscal year ending March 31, 2022, ”Kariuki said.

The group’s total assets stood at 40 billion shillings as of March 31, 2021, funded by equity of 23.4 billion shillings and 6.7 billion shillings in borrowings.


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