Helios Investment Partners, the new majority shareholder of Telkom Kenya, has set up a real estate division to tap into the telecom company’s Sh13 billion prime property holdings. This is according Aldo Mareuse the new chief executive.
Mareuse said Telkom Kenya will appoint a head for its newly-created real estate unit, signalling the company’s focus on the division as a major revenue earner.
Telkom’s vast real estate wealth is estimated at Sh13 billion, according to a valuation report Orange had prepared ahead of failed negotiations to sell the stake to Nigerian investors in 2015.
Mr Aldo unveiled the reorganised business structure that includes the real estate, mobile and fixed telephone units.
“The company has reorganised its structure in four business divisions, mobile, fixed, wholesale and real estate. The heads of fixed, real estate business divisions will be named in the due course,” Mr Aldo said during his maiden media briefing Tuesday. Francois Bresson, the company’s chief finance officer, has been retained in his position.
Under the reorganised business structure, George Kebasso, the company’s chief carrier services officer, has been appointed the head of wholesale division while Amer Atwi, joins the company as head of mobile division.
Prior to the appointment, Mr Atwi was the managing director Comium, a mobile telecoms operator in Gambia.
John Barorot, a former Safaricom chief technical officer, joins the firm as chief technical and information officer.
A Telkom Kenya valuation shows that the firm has 335 properties priced at Sh9.4 billion. The majority of the pieces of land have buildings that host telephone switches, repeaters or microwaves.
The Investors Information report separately lists Telkom as owning 39.1 hectares of land and real estate properties along Nairobi’s Ngong Road with 11 residential buildings, a sports club and offices all valued at approximately Sh4 billion.
On Friday, Helios and the Government of Kenya inked the buyout deal. Under the deal, Helios owns 60 per cent while the government owns 40 per cent.
Also under the agreement, Helios Investment Partners will provide a shareholders loan of Sh30 billion to the telecommunication company – of which the Treasury will , once the Telkom Kenya starts making money , receive a repayment for the shareholders loan to the tune of Sh12 billion-equivalent to its 40 per cent stake in the company.