Investment firm TranCentury has put up property, in Kenya, Tanzania and Zambia, worth Ksh. 700 million up for sale in an effort to condense its heavy debt load that has affected its profitability and ability to finance new business.
The properties up for sale in Nairobi include a residential house in Lavington Estate and a plot of land in Industrial Area. The firm is also selling a residential house in Dar-es-Salaam and a number of buildings in Zambia’s Light Industrial Area. The investment firm has already hired property agents to market and assist in selling the properties.
“Despite the low activity in the property market, the group is still focused on disposing of its non-operating assets in order to improve liquidity and reduce the debt burden both at the group and in the operating units. This process is geared towards achieving lean operations and is expected to generate cash flow to improve the working capital of the business thereby unlocking the value of excess assets in the operating units and improving return on capital deployed,” TransCentury says in its latest annual report.
The company also revealed that it is currently looking for other assets to dispose of. Funds recovered from the assets will be used to finance the company’s recently acquired business contracts.
In the first six months of the year, TransCentury registered a Ksh. 297.6 million net profit up from a Ksh. 684.8 million net loss registered in a similar period in 2018. The company attributed the profit jump to successful debt restructuring which saw it record a Ksh. 1.3 billion gain in the first six months of the year, nine times higher than the Ksh. 145 million it registered in the first half of 2018. Increased delivery of orders similarly contributed to the company’s revenue growing by 11 percent to Ksh. 2.53 billion.