Stanbic Bank Zambia Limited provided bilateral funding of USD10 million to Forli Limited in order to construct Lewanika shopping mall in Woodlands, Lusaka.
The facility provided two tranches of funds, namely an upfront payment of USD5 million and USD5 million on a cost to complete basis. The upfront payment was possible due to the cash flows generated by Bascom Limited (the holding company of 72 town houses) - its loan guarantor.
Bascom’s cash flows were assessed as sufficient in order to service the interest and the upfront debt amount which mitigated the construction risk inherent in property development.
The loan facility includes a currency trigger to mitigate against currency devaluation which would likely drive conversion of expected USD-based leases at Lewanika shopping mall to local currency.
Forli Limited is a property development and management company, incorporated in 2016 for the development of a new shopping centre - Lewanika Mall in Lusaka.
Forli currently leases and operates approximately 3 000 square metres of shopping space around Woodlands stadium, mainly occupied by local businesses.
Forli has common ownership with Bascom Limited which owns, lets and manages 72 upmarket townhouses in New Kasama. The Casillis (Bascom) jointly own Graduare, LM&C and Ancona with SA Corp - the companies which own and manage East Park Mall, Acacia Park corporate office and Jacaranda Mall in Ndola respectively.
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