Royal Systems & Services Limited, a Ghana based group of companies, announced today that it has signed a financing term sheet of USD$80 million with Milost Global Inc, a New York based Private Equity Firm. This is a working capital and development facility for the company which is being provided as a combo of Debt and Equity, of which $50 million will be an equity facility and $30 million will be debt facility. Both the company and the investor are expected to sign a commitment letter by September 18th 2017. An estimated amount of $21 million is provided for Royal to focus on the completion of its current Takoradi Student Accommodation which being developed in partnership with Takoradi Technical University in Ghana. Then the balance of $59 million will be used for working capital at a group level and other projects.
The Chief Executive Officer of Royal Systems & Services Limited, Samuel Quadjie, stated “This is very important milestone in the life of the company and we believe the impact it will make on our growth strategy is expected to be phenomenal. Opportunities which were hitherto not available to us in certain sectors of the economy have become a possibility with the capacity this partnership provides. Most capital sources in our country have been difficult to obtain due to the high interest regime. This partnership gives us the flexibility to initiate and roll out potential projects with a calculated approach. We appreciate the new path we are treading and are confident it will generate the necessary returns to make our investors happy while providing much needed boost in economic activity.”
The Managing Partner & CEO of Milost Global, Mandla J. Gwadiso, stated “This is a very nice and profitable company that is well managed by visionaries with a growth perspective beyond West Africa. We are glad to have partnered such great talent.”
President and COO of Milost Global Inc., Mr. Bernard Yaw, added “We believe in financing the education market as every developing country will need an enormous pool of talented and educated workers to move the country from a low-based agricultural to a high paying industrial economy. The Company’s entrance into the sustainable and high demand student housing market that will provide strong and steady cash flow to the Company, auger well for our investment into Royal Systems & Services Limited and for the country of Ghana.”
About THE PROJECT
On August 1 2017, Royal Systems signed a 23-year “BOOT”- Build, Own, Operate, and Transfer- agreement with Takoradi Technical University (TTU), located in Takoradi, the Western Region of Ghana, to construct a student hostel. The Takoradi Technical University Hostel is a ~3000-bed student hostel project designed to support the university house a section of its student population to be admitted to a new satellite campus under construction.
The facility is designed to be an ultra-modern state of the art structure using advanced building technology and will be located on a 8.0-acre land within the school campus.
Construction works began in January 2017 and the first phase, a 1000-bed block is expected to be complete in August 2018 before the beginning of the first academic year on the new campus.
The project is estimated to cost ~USD 24,000,000.00
The completed project, which will help immensely to plug the perennial accommodation deficit facing the school, also provides the unique opportunity for Royal Systems to expand its existing operations into the student hostel real estate subsector, a very profitable market in Ghana. As Ghana’s tertiary population keeps growing, we are confident that this project will generate sustained real return into the future to satisfy our investors. We are also conscious of the relief it provides to improve the welfare of the student population of the university.
About Royal Systems & Services Limited
ROYAL SYSTEMS & SERVICES LIMITED, is a wholly Ghanaian owned company existing under the laws of Ghana having its registered office at #6 off Filbert Street, Near St. Martin De-Pores School Dansoman Accra, P.O.Box 12802 Accra-North. The company predominantly deals in providing telecommunication infrastructure and civil engineering and consultancy and building and construction.
RSSL is also registered as a class D1K1 contractor with the Ministry of Water Resources, Works and Housing with REG CERT NO. MWRWH/CERT NO 31670A.
The company has three directors and experienced staff strength of about 60 individuals with varied background and skills in civil engineering, project management, finance, accounting and telecommunication. In addition to its personnel, the company hires additional staff on contract basis when it has excess work load or need a specific expertise it lacks.
RSSL is an OHSAS 18001 and an ISO 9001:2015 Certified Company and is highly committed to working to meet internationally acclaimed standards. RSSL is driven by the core values of Responsiveness, Reliability, Integrity, Speed and Quality.
WHAT WE DO
General Civil Construction & Design
We have a team of Civil Engineers and Certified Building Technologists that deploy state of the art:
- Building Designs and Construction (including Structural Design, Draftsmanship, Quantity Surveying, Actual Construction and Supervision works)
- General Estate/Facility Management and Maintenance (including civils, electrical, electro-mechanical, carpentry, plumbing and all other related building construction works)
- Office Fit-outs and General Furniture Supplies
Turnkey Telecommunications Services
- Site Acquisition
- Site Design Works (Technical Site Surveys, Design Packs, As-built and Engineering Services)
- Civil Works (Including Tower Foundation, Site Refurbishment Works, Co-location Works)
- Tower Erection (Including Foundation Modification, Tower Strengthening, Tower Refurbishments)
- Power and Electrical Works (Including Generator & Solar Power Installations, Maintenance and Services)
- Telecom Installations (BTS, TX, Data Centers, Security Systems)
- Fiber Laying and Terminations (Including Security Fixtures)
- Transportation and Haulage Services
- Telecom Material Supplies (Power Cabinets, Tower Accessories, Installation materials, man hole covers, Fiber Optics Materials)
- Electrical materials (cables, breakers, earthing materials etc.)
We have grown turnover from GHS 563,000 (2011) to GHS 14,994,343(2016).
About MILOST GLOBAL, INC.
Milost Global, Inc. is an American Private Equity firm that is headquartered in New York City. With more than $25 billion in committed capital, Milost is at the intersection of creative investing and value creation. Milost is also a provider of alternative capital, mezzanine finance and alternative lending to a broad range of industries across the globe including Technology, Transport, Cannabis, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development. www.milostglobal.com
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