Nigeria: Shelter Afrique Approves U.S.$ 19.5 Million Credit Line to Nigerian Firm for Affordable Housing – AllAfrica – Top Africa News

Shelter Afrique has extended a USD19.5 million line of credit to Lagos-based real estate firm Mixta Real Estate PLC.
According to the Pan-African housing development financier, the 7-year facility with a moratorium of 24 months has been structured to co-finance Mixta’s affordable residential projects investments and for debt refinancing.
Of the amount, USD9.75 will be used to co-finance 1,171 affordable housing units comprising the ongoing Beechwood Park project (187 units) and New Marula projects (984 units).
The other USD9.75 will be used to repay part of Mixta’s 7-month Commercial Papers raised from the capital market in a bid to reduce the aggregate Commercial Papers.
“The deal with Mixta Real Estate PLC is appealing to us because in addition to addressing the development of affordable it also it stimulates rapid growth in housing provision, re-invigorates the development of the mortgage industry, as well as incorporating a sustainable development finance solution that makes the sector attractive to financiers,” Shelter Afrique Ag. Managing Director Kingsley Muwowo said.
Commenting on the deal, Mixta Africa, Executive Director and Chief Financial Officer Benson Ajayi said enabling access to housing and home ownership at affordable prices is the company’s main priority.
“The funding from Shelter Afrique is a validation of Mixta Africa’s housing and infrastructure development credentials. We are pleased to receive this funding approval after a rigorous due diligence process. In addition to accelerating the delivery of sustainable and affordable housing, the transaction will also strengthen the company’s funding status. The Company is delighted about the support of Shelter Afrique and looks forward to working with Shelter Afrique to deliver on its affordable housing mandate across Africa,” Ajayi said.
Shelter Afrique has had a long-term relationship with Mixta Africa dating back to 2014, when the Company extended USD 6 million to Mixta (formerly ARM Properties PLC) to co-finance the development of 13 blocks comprising 130 apartments and related infrastructures services for outright sale to the public. The project was successfully completed, and the loan full paid back.
In March 2021, Shelter Afrique Board of Directors approved a corporate loan in the form of a line of credit of USD 13 million in favour of Mixta. The 5- year facility was to be on-lent to Mixta’s Real Estate Development affiliates to fund the Group’s current real estate portfolio composed of three key housing developments programs of 889 low to middle housing units in Morocco (371 units), in Senegal (162 units) and in Ivory Coast (356 housing units).
“We are jointly reviewing a few terms and conditions of this facility at the moment, and loan agreements between the two parties is expected will be signed soon,”Muwowo said.
The facility is expected to directly impact over 1,171 families, provide accommodation for over 4,684 people (average size of households in Lagos is 3.8) and create at least 2,342 jobs.
Nigeria pays US$7.15 million for larger stake in Shelter Afrique
In a related story, Nigeria recently paid US$7.15 million to acquire a larger stake in Shelter Afrique.
In June 2022, The Exchange Africa reported that Shelter Afrique had acquired further capital contribution from the Federal government of Nigeria.
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The newly acquired stock brought Nigeria’s total shareholding up to 15.8 per cent, putting it one percentage point behind the top shareholder, Kenya, whose holdings currently amount to 16.85 per cent. African Development Bank (AfDB), which now stands at 12.16 per cent down from 12.71 per cent, Mali at 5.3 per cent down from 5.54 per cent, and Ghana at 5.05 per cent down from 5.28 per cent are the other top three owners in Shelter Afrique, whose shareholdings have now changed.
Muwowo praised the Nigerian government for its vote of confidence in the organisation. He went on to say that the move puts When Nigeria has fulfilled all of its capital obligations, the government will be in an excellent position to take over as the majority shareholder in Shelter-Afrique.
Nigeria increases stake in Shelter Afrique with $29.3m
Read the original article on The Exchange.
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