Industrial property developer gets Sh4.8bn IFC loan for expansion

IFC Regional Director for Eastern Africa Jumoke Jagun-Dokunmu. FILE PHOTO | NMG    

By CHARLES MWANIKI More by this Author

The International Finance Corporation (IFC) is set to lend $30 million (Sh4.8 billion) to

Bora Africa, an investment vehicle focused on industrial properties in Kenya and Mozambique.

Bora is controlled by Mauritius-based Grit Real Estate Income Group, which said in regulatory disclosures that the IFC funds would be used to expand Bora’s project pipeline.

Bora Africa, a specialist industrial real estate vehicle, was established on October 24, 2023, when Grit-owned industrial assets namely Imperial, Bollore, Orbit and two industrial land assets were transferred to the newly established entity.

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Grit is in the process of offloading a 99.9 percent stake in Bora to its real estate development arm Gateway Real Estate Africa Ltd (GREA)—where it holds a 53.5 percent stake, with the remainder in the hands of the Public Investment Corporation of South Africa.

The transfer of Bora to GREA aims to raise funds that Grit will in turn use to finance its share of a $100 million shareholder cash call made by GREA on its two shareholders. The related party deal will, therefore, result in no change to existing beneficial interests.

“In addition, a subordinated hybrid note will be issued to IFC, a member of the World Bank Group, for approximately $16.9 million to fund Bora Africa’s initial pipeline...Bora Africa is in advanced discussions with IFC in respect of the issue of a further subordinated hybrid note for approximately $13.1 million,” said Grit in the disclosures.

The new loan notes, when approved, will mark the latest instance of the IFC funding Grit or its subsidiaries for Kenyan-linked investments.

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In 2021, IFC lent Grit Sh2.7 billion to go towards funding its Sh4.3 billion purchase of the Orbit facility in Mlolongo from consumer goods manufacturer Orbit Products Africa, which then entered into a lease back agreement for an initial 25 years with the Mauritian firm to continue operating from the 20-acre property.

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