Mixta Real Estate PLC, a real estate company with offices in Lagos, has been given a USD19.5 million credit line by Shelter Afrique.
Mixta has designed the seven-year facility with a 24-month moratorium to co-finance its investments in affordable residential projects as well as for debt refinancing.
1171 affordable housing units, including the existing Beechwood Park project (187 units) and the New Marula projects, will be co-financed with the sum of USD9.75 million (984 units).
The remaining $9.75 million will be utilized to partially repay Mixta’s seven-month Commercial Papers that were acquired in the capital market in an effort to lower the total Commercial Papers.
“The deal with Mixta Real Estate PLC is appealing to us because in addition to addressing the development of affordable housing, it also 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’s 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 USD6m to Mixta (formerly ARM Properties PLC) to co-finance the development of 13 blocks comprising 130 apartments and related infrastructure services for outright sale to the public. The project was successfully completed and the loan fully paid back.
