Stanbic Bank Kenya lent Sh3.3 billion ($25.6 million) to Gateway CCI Limited, a subsidiary of Mauritius-based real estate firm Grit in the year ended June.
This marks Grit’s increased borrowing in the local market where it is expanding its property portfolio spread across commercial and residential units.
The dollar denominated facility from Stanbic Kenya was used for the development of ENEO CCI project in Tatu City that hosts a business process outsourcing firm and other tenants, including banks.
The loan has an interest rate of a three month Secured Overnight Financing Rate, which is about 5.09 percent (as at close of Monday) and a margin of 5.5 percent, maturing in June 2029.
“A net increase in borrowings was largely driven by additional borrowings provided to Gateway CCI upon completion of the development phase of the ENEO CCI project during the year,” said Grit in the latest annual report.
Eneo in Tatu City, the headquarters of CCI Global, was commissioned on May 10. CIC offers contact centre services to major corporate clients. The call centre employs over 3,000 people.
“The development was completed six months ahead of plan, eight percent under budget and at a 10 percent development yield. The building is principally tenanted to Call Centre International Global, a leading international call centre operator, with the balance of space occupied by financial services and other multinational companies,” said Grit.
Gateway CCI is a special economic zone gazetted and incorporated in Kenya. Grit owns 53 percent of Gateway CCI as at end of June 2024.
Eneo has a gross leasable area occupancy of 67.2 percent as at June 2024 with the expectation it will be fully let in December. Grit Services Limited, another subsidiary of the Mauritian multinational, also expanded its borrowings from NCBA Bank Kenya to $30.58 million (Sh3.9 billion) in the review period from $17.5 million (Sh2.2 billion) a year earlier.
The bank has disbursed several facilities to the real estate firm at an interest rate calculated at SOFR three months plus a 6.5 percent margin.
The loans were set to mature in June 2024. It was not clear whether they were refinanced with the same bank or paid off.
The property investor has a Revolving Credit Facility (RFC) with NCBA, allowing it to borrow, repay and borrow again on a rolling basis. The NCBA loans are secured by Grit’s properties in Kenya.
The borrowings have been disclosed by Grit which has been expanding its investments in Kenya and other regional markets’ property sector. Grit Services is the main subsidiary of the multinational whose assets in Kenya include Naivasha’s Buffalo Mall, the US embassy’s gated estate in Nairobi, Imperial Warehouse and Orbit Africa’s manufacturing facilities.
