VENTURES AFRICA – Ethiopia: Habesha Construction, a company established to engage in the supply of construction materials and Real estate development in Ethiopia, is considering a joint venture arrangement as opposed to selling shares due to a lackluster shares market.
According to company sources, the company faced challenges in selling the projected 400 million birr ($22.9m) worth of shares being able to sell just 43.73 million birr ($2.5m) of shares worth 1000 birr ($54.2) each .
The company would be partnering with four real estate companies with Same Real Estate handling the construction of 304 condominium apartments and 25 villas in the Bole area while Sunset Real Estate will help with the construction of 10 four storey modern houses in Meri Loke.
The other two joint ventures with Abew Estate and Tigat Business Center will be in charge of two 4 storey housing units plus eight one storey villas and a project for two basement-plus-10 Storey buildings still in the design stage, respectively.
The decision to form the joint ventures was announced at the same time as the company performance report that anticipates disbursing nine billion birr ($516m) amongst shareholders, an annual return of approximately 35% per paid share.
It is to be remembered that HCMDSC currently has two active real estate projects to be found in Yeka and Kirkos Districts. The first project consists of 50 houses for personal and commercial use that are already under construction while the second project is still in the design stage.
Habesha Construction was established in 2009 with 200 shareholders and 200,000 birr ($11, 484) subscribed capital. Currently it has more than 2020 shareholders.