Fairview Hotel Sale: In September 2021, the sale of Fairview Hotel and City Lodge Two Rivers at Sh. 1 billion to private equity fund Actis was announced. One month later, it has now emerged that Fairview will not be sold to Actis alone. According to filings that have been made at the Comesa Competition Commision, Faiview will be acquired by Actis in a joint venture with a secret offshore company. The offshore company is registered in the British Virgin Islands.
Reports say that the filings show Actis and Jamison Valley Holdings will buy Fairview indirectly through Ukarimu real estate funds. Ukarimu will then be owned by a special purpose vehicle dubbed Msafiri Limited who has been listed in Mauritius. “Jamison does not intend to disclose any additional information, including details of its structure to any third parties other than those contained in the Commission’s Merger Inquiry Notice No. 26 of 2021 dated 16th September 2021,” Sandya Booluck, senior analyst, the Mergers and Acquisitions at Comesa Competition Commission said.
City Lodge Hotel Group put up the three Kenyan hotels and Tanzania’s City Lodge Hotel in Dar es Salaam up for sale as part of its plan to quit the East African market.
When traders at Two Rivers earned Sh. 1 billion in seven days
This exit comes less than seven years after the group ventured into this market. It has also been fueled by streaks of losses that in the year 2020 stood at some Sh. 2 billion per year. Although the Kenyan hotel will be sold at Sh. 1 billion, the Tanzania one will be sold at some Sh. 7.3 million.
“The shares in respect of the Kenya Disposal will be disposed of for an aggregate consideration of ZAR140.9 million which will be settled in cash by Ukarimu and the shares in respect of the Tanzania Disposal will be disposed of for an aggregate consideration of ZAR1 million which will be settled in cash by Faraja,” the firm said. “The losses attributable to the Kenya Assets and the Tanzania Assets including impairments was ZAR371.1 million for the six months ended 31 December 2020.”