Nothing is wrong with him.That's how things roll in a bandit econ.

The CJ agrees. http://africanarguments....f-justice-willy-mutunga/

I think guys are too quick to dismiss Centum's ability to generate superior returns on its ventures purely on the basis of one transaction.

Like Chris Kirubi or not, I think the board and management of Centum are a pretty sharp lot and their track record speaks for itself.

The deal with Old Mutual in my view is actually positive in terms of value creation. Note that Centum is ceding stakes in the Two Rivers Lifestyle Centre (TRLC) not Two Rivers Development Ltd (TRDL) which are two different entities. Whereas Centum is going to lose out on future revenue streams from rentals in TRLC, it realizes value now through the stake sold to Old Mutual. The cash that Centum would otherwise have had to invest in TRLC can be applied to other ventures such as the rest of TRDL and/other Centum projects, of which there is no shortage.

See the quote below from the Centum Press Release for further clarity.

Old Mutual’s property division, Old Mutual Property (OMP) has invested Kenya Shillings 6.4 Billion in Two Rivers Lifestyle Centre (TRLC), the holding company for the Two Rivers Mall, in a landmark deal that was arranged solely by Nabo Capital.The Two Rivers Mall, sitting on 10.2 acres, is part of the larger 102 acre master-planned Two Rivers Development.

James Mworia is very sharp. And a nice guy as far as I can tell.
You have a good point.
What Centum needs to do is provide a flowchart that shows the ownership of these entities so a sale of 50% of TRLC doesn't seem like a sale of its parent TRDL. TRLC is just a one part of TRDL. There's a lot more going on.

Though as I have mentioned earlier. If you do not trust the Management...

Now we have the official statement from centum. My simple reading is that centum has sold 50% of the area where the mall(10.2 acres-including the buildings) out of the 100 acres. The remaining area is left for other businesses(residential,hotel,hospital etc). The 6.4 billion is for approx 5 acres (50% of 10.2 acres) valuing whole plot at approx 100 Billion. Not bad for value creation. The only help i need from wazua, who has the organogram for the property business of centum

Madebe flawed valuation at play and that's what most people believe. They paid for 5 acres with a mall/structure that is half complete. The rest of the 90 acres has nothing on it thus you cannot value it at 90 Billion now! i'd say it's 90 acres times 40 million an acre 3.6 Billion.

Two Rivers is a long term project considering what is left to be done in the subsequent phases. These guys shall play tricks to source financing to finish the rest of it and that's when the cookie might crumble.

Just read the story about cartels by willy mutunga.there is this mp from central who had been fighting cartels wa kahawa. To see the magnitude of the cartels, the mpigs who were to discuss the issue are carefully dodging discussing the issue in bunge,... they cartels compromised them .kenya ni noma.i didn't expect a whole cj would come against his same govt.
I like willy mutunga and as iv said before most Kenyans who were trained "outside kenya" are usually very honest and elite. If not wrong mutunga went to usa for his PhD or something ....product is pure honesty.but DJ man he is something else .... I have nothing personal against this guy . He just shafted me big time during the ICDC Uchumi thing kitambo and iv never forgotten it. I invested in Centum but when I came to hear he is the head,the prices had dropped way beyond what I bought .now I'm clinging on golden handcuffs on my wrist waiting to be free once I get my buying price .

Yes! Centum hasn't sold 5 'undeveloped' acres but 50% of a PROJECT [that happens to sit on 10 acres] that consists of a (half-completed) structure with many tenants signed up AND infrastructure [roads, lighting, security] to bring customers to the tenants. OMP is going to give a LOAN to TRML which will help complete the building & there's an option [as I understand it] to convert the loan into NEW shares worth 40% of the shareholding of TRML. Perhaps, just like TCL or ARM, if OMP feels the value isn't there they could decline taking up the 40% & ask for a Loan repayment.

The South Africans aren't fools. OM is no fool either. They will probably make sure that the 6.4bn goes into the Mall and not other Centum projects that have nothing to do with TRML.

so the Old mutual = 50%
then the Chinese AVIC=38.9%

total = 88.9%

meaning centum will own 11.1%

Ama mimi sielewi hii hesabu

"UK-based multinational Old Mutual in January invested Sh6.4 billion in the project, giving it an equivalent 50 per cent stake.
Centum last April also said that a Chinese firm, Aviation Industry Corporation of China (Avic), had invested $70 million (Sh7.1 billion) in Two Rivers for a 38.9 per cent stake. Besides the equity investment, Avic is also the main contractor for the project.


State-owned investment firm ICDC, which has a 23 per cent stake in Centum, made a $5 million (Sh462.5 million) equity investment while Co-operative Bank contributed Sh7.2 billion in debt funding for the project."

Also note there could be other players in for the 11.1% and so I should expect their stake to be much much lower/

Link

In summary;
Old Mutual owns 50% stake in the Mall
Centum owns 29% stake in the mall
AVIC 19.45%
ICDC 1.55%
Total shareholding in TRLC sums up to 100%.