A residential Building Developed by Acorn Holdings Limited. Photo/Courtesy.
The Capital Markets Authority (CMA) has approved Acorn Holding Limited’s plan to establish a Build-to-Rent Development Real Estate Investment Trust (D-REIT), a move expected to accelerate the growth of affordable rental housing for Kenya’s young urban population.
The new fund, known as the Acorn Build-to-Rent D-REIT (ABTR D-REIT), will allow investors to take part in the large-scale development of professionally managed rental properties tailored to the needs and preferences of young urban residents.
To support the initiative, Sh2.2 billion (USD 17 million) in equity has been committed by three organisations. The Private Infrastructure Development Group (PIDG), through its project development arm InfraCo, contributed Sh1.3 billion (USD 10 million) as the anchor investment.
In addition, Shelter Afrique Development Bank will invest Sh258 million (USD 2 million), while Acorn itself will inject Sh645 million (USD 5 million). Stanbic SBG Securities Limited is serving as the transaction advisor.
“The launch of the Acorn Build-to-Rent (ABTR) D-REIT marks another important milestone in our journey to provide urban Africa with rental housing solutions,” said Edward Kirathe, CEO of Acorn Holding Ltd.
Claire Jarrat, Head of Investment Management for InfraCo, praised the collaboration with Acorn, noting that it has enabled the introduction of a new product in the Kenyan housing market aimed at delivering affordable housing for young urbanists.
She added that the homes will meet the expectations and needs of different segments while also catering to both young female and male professionals.
Shelter Afrique Development Bank Managing Director Thierno Habib Hann said.
“It gives us great pleasure as Shelter Afrique Development Bank to announce Sh 257.9 million (USD 2 million) financial agreement with Acorn Holdings aimed at expanding sustainable, inclusive, dignified, and quality accommodation for young urban professionals for Africa’s future.”
He also commended Acorn’s innovative financial models, which include green bonds and real estate investment trusts.
