Shelter Afrique has extended a USD19.5 million line of credit to Lagos-based real estate firm, Mixta Real Estate PLC.
The seven-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, USD9.75m 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 USD9.75m will be used to repay part of Mixta’s seven-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 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.