NCBA Bank Kenya Extends $6.8 Million Credit to Grit Real Estate in 2023
In the fiscal year ending in June 2023, NCBA Bank Kenya significantly bolstered Grit Real Estate’s financial capabilities by extending an additional $6.8 million (KES 1.0 billion) in credit to the esteemed Mauritian real estate firm.
Rising Dollar-Denominated Credit Facilities
Underlining its commitment to fostering financial growth, NCBA Bank Kenya has raised the bar, as their dollar-denominated credit facilities witnessed a notable surge, escalating from $10.7 million (KES 1.6 billion) in 2022 to a substantial $17.5 million (KES 1.6 billion) in the year 2023. These loans remain closely tied to transactions in the US treasuries markets, entailing an annual interest rate of 11.8 percent.
Grit Real Estate’s Expanding Investment in Kenya
The recent revelation comes as no surprise, given Grit Real Estate Income Group’s persistent efforts in augmenting its investments not only in Kenya but also in other regional property markets. The company’s Kenyan portfolio encompasses prominent assets like the Buffalo Mall in Naivasha, the US embassy’s exclusive gated estate in Nairobi, the Imperial Warehouse, and Orbit Africa’s state-of-the-art manufacturing facilities.
Eneo: A Step Towards Sustainable Development
Eneo, a striking five-story office tower currently under construction in Tatu City, serves as a testament to Grit’s commitment to sustainable building practices. The project seamlessly integrates the use of indigenous materials, coupled with a meticulous optimization of natural light and airflow. This noteworthy initiative is the result of a strategic collaboration between GREA and Rendeavour, the esteemed development company behind Tatu City.
Continuous Financial Support from NCBA Bank
A testament to its stable financial standing, Grit Real Estate has a reliable Revolving Credit Facility (RCF) with NCBA Bank, enabling seamless borrowing, repayment, and further borrowing on an ongoing basis. In October 2023, Grit Services Limited drew an additional $3.9 million (KES 217.7 million) from NCBA Bank Kenya, effectively leveraging the existing NCBA RCF facility, which tallied up to $8.0 million (KES 1.2 billion).
Diversifying Financial Relationships for Expansion
Even though NCBA Bank’s contributions accounted for a significant portion of the firm’s total debt, specifically 3.8 percent in the fiscal year ending June 2023, Grit Real Estate, under the primary financial backing of South Africa’s Standard Group, has been diligently broadening its horizons by diversifying its banking relationships. This strategic move aligns seamlessly with the company’s overarching expansion strategy, aimed at securing a more significant foothold across various markets within the continent.
A Growing Presence in Kenya
Underscoring its unwavering commitment to the Kenyan market, Grit Real Estate recently inaugurated a new representative office in the country, a testament to its unyielding dedication towards further expansion and growth within the region.
