Fusion Capital, a private equity firm, has raised Ksh. 800 million for the completion of Greenwood City Mall in Meru from local and international investors.
Fusion had previously structured the financing of the mall as a Development Real Estate Investment Trust (D-REIT), achieving a 38% subscription against the set threshold of 50% subscription. Shareholders of Meru Greenwood Park however dropped the D-REIT in favour of private funding for the development.
The Ksh. 800 million is a follow-on investment from the original investment of about Ksh. 464,185,000 ($4.3 million) hence total funding of about Ksh. 1.2 billion ($12 million).
Commenting on the newly raised capital, Daniel Kamau, CEO Fusion Group said, “We have a first-mover advantage in Meru and hence the decision to proceed with the circa 12,000 sqm shopping mall which we believe is going to be a destination mall for the towns surrounding Meru and for the Mt. Kenya East region.”
Meru Greenwood City Mall is part of a mixed-use development complex offering retail spaces, banking halls, eateries, play spaces, and office spaces strategically located at the edge of Meru Town. The development is expected to open doors of opportunity to the youth and residents of Meru County and the surrounding counties.
The holistic Greenwood City Mall live, work and play setting will provide an ideal environment with natural open spaces with playgrounds, community facilities, commercial and retail space.