Loss-making real estate company Home Afrika has resulted to offloading its assets to settle an outstanding multi-million loan. The company that is listed on the Nairobi Securities Exchange owes the I&M Bank Sh. 79 million.
It also has outstanding debts with the Co-operative Bank and the NCBA Bank Group. To pay off this debt, the company will sell its assets including houses and land.
The company will sell of six houses that are located at its Mitini Scapes Development project along Kiambu Road and Lake View Heights in Kisumu.
“During the year ended December 31, 2023, the directors negotiated a final and full settlement with the bank (I&M) of Sh. 100 million and the group paid Sh. 22 million during the year, towards settlement of the loan balance,” said Home Afrika.
Kenyans living in US launch Sh. 5.1 billion housing project in Malindi
“The outstanding balance of Sh. 79 million will be repaid in the next financial year from proceeds realized from the sale of six housing units under Mitini Scapes Development Limited and the sale of 5 acres of land under Lake View Heights Limited in Kisumu.”
According to the company’s financials, Home Afrika owed I&M Bank Sh. 141.3 million in the financial year ended December 2022. This was brought down to Sh. 79 million in the financial year ended December 2023.
The loans taken by the real estate developer were secured by Sh. 1.3 billion worth of guarantors including a mortgage, debenture, and an indemnity corporate guarantee both personal and joint from the directors.
Home Afrika, which was the first real estate dedicated medium company to list on the NSE’s ‘Growth Enterprise Market Segment’ (GEMS), has been seen its fortunes turn sour over the past couple of years.
On the NSE, the company is currently a penny stock with a 52 week range of 0.27 cents to 0.42 cents per share. Its stock is currently valued at around 30 cents per share.
