Centum real estate, a fully-owned subsidiary of Centum Investment Company Plc has reported KES 650M consolidated operating profit for the year ended 31st March 2022, driven by profits from homes sales and development rights business line. Home sales have achieved significant revenue growth to KES 1.8B realized from 301 completed homes, up from KES 457M generated from 96 completed homes in prior year. Development rights sales generated KES 1.7B from sale of 843 acres compared to KES 2.5B realized from sale of 1,324 acres in prior year.
As at 31st March 2022, residential business collected cash deposits of KES 6.6B ( 2021: KES 3.8B) from cumulative sale of 1,739 homes (2021: 1,363) with a total sales value of KES 14.8B (2021: KES 11.3B). The cash collected from residential customer deposits within the year increased by KES 2.8B (2021: KES 1.8B). Development rights business collected cumulative cash of KES 3.85B from cumulative sales of 2,197 acres (2021: 1,324 acres) with total sales of KES 4.9B. “This performance validates attractive, demand led, high growth, capital light and cash generating business model,” said the Centum Real Estate Ltd Managing Director, Kenneth Mbae.
During the year, the strong cashflows were utilized to fund construction of residential units, settle maturing debt obligation, and reduce the debt by KES 836M on account of principal repayments. The group closed the year with a strong liquidity position with cash holding of KES 1.6B.
“Centum RE is well positioned to capture the unmet high growth affordable housing market opportunity driven by sustained population growth and high urbanization creating high residential demand with limited quality housing supply in East Africa. We expect development rights sales to be
a key cash flow generator based on the level of expression interest received,” noted Mr. Mbae.
“In the next financial year, Centum RE expects to complete construction of additional +300 homes, launch phase 2 affordable housing project and pursue value creation through margin growth by re-imagining design, reducing construction timelines and supply chain review to source materials from COMESA region and take advantage of incentives said,” Mr. Mbae.
Centum Real Estate is the region’s leading investor and developer of mixed-use urban nodes in Nairobi, Kilifi, and Entebbe in Uganda. Centum RE track record assures its investors of quality, value for money, timely handover of projects and a return on their investment.
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