GulfCap Investments Bank, real estate Equity firm Heri Investments announce partnership

GulfCap Investments Bank and real estate equity firm Heri Investments have announced a new partnership that will see the investment bank invest its Sharia-compliant Funds to enhance the expansion of Nova Pioneer educational institutions.

The partnership will be managed under Heri Tripple Net Investments LP, under a Sharia-compliant agreement that will enable Heri to strengthen and enhance Nova Pioneer’s educational facilities at Tatu City as well as enable their expansion.

The joint venture will use the proceeds of the offer size of Sh2.1 billion to acquire ordinary shares in two companies that own the Nova Pioneer schools located in Tatu City valued at Sh3.23 billion.

The Promoter, Heri PLC, has already committed Sh1.130 million into the partnership directly and through Heri Holdings Limited, its wholly owned subsidiary.

Investors in the limited partnership will receive an average expected total return of 14.24 per cent p.a over the investment period of ten years, comprising dividends and capital gains.

Sharia-compliant investments, also known as Islamic finance, are investments that adhere to the principles of Islamic law (Sharia), focusing on ethical and permissible financial activities, avoiding practices like interest (riba) and excessive uncertainty.

Nova Pioneer is a pan-African school group that operates 15 schools in Kenya and South Africa, educating children in pre-primary, primary and secondary schools.

The group was founded with a mission to develop generations of innovators and leaders who will shape the African Century.

In service of that mission, it emphasises excellent academics, holistic character development, strong school culture, and a unique Innovation & Leadership curriculum.

Heri is a diversified investment and management company that seeks to build long-term shareholder value by originating, financing and managing equity and debt investments in strategic real estate sectors where demand and supply intersect sustainably.

Saud Shahbal, the CEO GulfCap Investment Bank said the partnership was aimed at unlocking value for sharia compliant investments at the bank, while diversifying the investment portfolio.

Speaking during an investor’s dinner at a Nairobi hotel, Shahbal said the partnership will allow the bank to invest in projects that are aligned with sharia compliance while making a positive impact in the community like providing quality education.

James Kaniaru, CEO of Heri, said the investments will ensure holistic education at the institutions while guaranteeing shareholder returns.