Private equity firm, Fusion Capital, has raised KShs 800 million for 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.
However, shareholders of Meru Greenwood Park dropped the DREIT in favour of private funding for the development.
The KSh800 million is a follow-on investment from the original investment of about $4.3 million hence total funding of about $12 million (KSh1.2 billion).
“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,” Fusion Group’s Chief Executive, Daniel Kamau stated.
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.
Meru County is in the Central Region of Kenya and is home to a population of over 1.5 million people. Meru shares its borders with five other counties: Isiolo to the North, Nyeri to the South West, Tharaka Nithi to the South West and Laikipia to the West making it an attractive business hub in the Mount Kenya region.
