Two Rivers Enters Agreement Easing Ksh 4.5B Debt

The Two Rivers Lifestyle Center has struck a deal that will ease its Ksh4.5Billion debt with a zero-interest and equity-linked instrument.

The company comprises the Two Rivers Mall, the biggest mall in East Africa, Sub-sahara outside South Africa at 67,000 sq meters and the Office Towers at 27,000 sq meters of office space.

The firm will save Ksh340 million annually and with the financiers getting an opportunity to reap from the business value appreciation.

Making the announcement, Centum Investment CEO James Mworia stated that the centre would make a cash flow positive following its annual debt servicing.

“The financing arrangement will see the replacement of a substantial portion of the existing senior loan with a zero-coupon instrument, but which participates in the upside of on the equity value uplift on the Center,”

Old Mutual Properties Managing Director Peter Levett backed the sentiments stating that the agreement has reinstalled their confidence at the hub.

“This agreement has further reinforced our confidence behind the centre and its potential and we are confident that the financing arrangement will strengthen the center and enable it to further deliver as a strong destination for tenants and shoppers.”

The hub has experienced a steady rise in traffic and the ramp of occupation in the Mall since My Spectrum Limited, a property management with headquarters in Europe, took charge in 2019, leading to increased profits and cash flow.

Two Rivers has considered cinema lovers by planning to have a cinema hall with six screens as plans to make it attractive, according to Theodoros Pantis, MD of Two Rivers Lifestyle Centre.