Chinese developer now top Home Afrika investor/Rebuilding Afrika

Chinese investor Zeyun Yang, the developer of the Great Wall apartments in Machakos County, has become the single largest shareholder in Nairobi Securities Exchange (NSE)-listed Home Afrika

after acquiring an 8.2 per cent stake.

August regulatory filings show that Mr Yang built up the stake after buying shares under his name and through his real estate firms Erdemann Property Limited and Erdemann Company (Kenya) Limited.

Home Afrika’s chief executive Dan Awendo told the Business Daily that the property developer has not been approached by Mr Yang for a strategic partnership, indicating that the Chinese investor is currently a passive investor in the company.

“We have not had discussions with them,” Mr Awendo said. Mr Yang’s stake in the loss-making Home Afrika is currently worth Sh23.2 million based on the firm’s share price of Sh0.7.

The entire company is quoted on the NSE at Sh283.6 million but the board of directors says this price heavily discounts the current market value of its land holdings, adding that it only carries them at cost.

“We know it as factual that our market capitalisation is not reflective of our balance sheet size especially if the current land market values are factored in,” the company says in its latest annual report.

“This is in line with IFRS reporting requirements.”

Mr Yang is one of the wealthiest shareholders of Home Afrika whose continued losses has been attributed to difficulty in raising enough capital to complete its projects.

The businessman’s Erdemann Property Ltd built 1,140 units of two and three-bedroom apartments in three phases of its Great Wall development at a cost of more than Sh3 billion. Part of the project was funded by China Development Bank.

In contrast, most of Home Afrika’s projects are yet to be completed and it recently backed out of two ventures in Kisumu and Kwale.
Credit:Business daily Africa

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