Chandaria Orbit Sale: Chandaria brothers Sachin Chandaria and Dhiren Chandaria will pocket Sh. 1.7 billion from the sale of their Orbit Products Africa Limited (Opal). Orbit, which is a manufacturing and warehousing facility in Mlolongo, will be sold off to Mauritius-based property firm Grit Real Estate Income Group.
According to reports, Grit has penned an agreement with the International Finance Corporation for a Sh. 2.7 billion loan to fund the takeover and development of the manufacturing firm. After the sale, Grit will spend an additional Sh. 967 million develop and expand the facilities of Opal, which is the contract manufacturer for global firms such as Reckitt Benckiser, Colgate-Palmolive and Unilever at the 20-acre site. “Opal, controlled by the Chandaria family, has operated in Kenya for more than 40 years and is the leading manufacturer of popular personal care and home care products for the East Africa region, employing over 600 permanent staff,” Grit said in a statement. “$16.1 million (Sh. 1.7 billion) of the loan will be utilised to fund the purchase consideration and associated transaction costs related to the initial sale and leaseback.”
SK Macharia loses Sh. 1.2 billion estate to grandson in bitter fight
The acquisition of Opal will add to Grit’s property portfolio in the country. Currently, Grit owns half of Naivasha Buffalo Mall and also holds a pharmaceutical warehouse along Mombasa Road that it leases out to South Africa’s Imperial Health Sciences Logistics.
An earlier report on the sale of Orbit by the Chandaria brothers had noted that if Orbit sells the entire property to Grit, it will still have an option of buying back a 20 percent interest stake in the assets at a cost of Sh. 9.2 billion in 11 years. Orbit, which was originally established as a family business, has been in existence since 1977 and is one of the largest manufacturers in East Africa.
