Acorn Holdings Limited has received authorization from the Capital Markets Authority (CMA) for the establishment of the Acorn Build-To-Rent Development Real Estate Investment Trust (ABTR D-REIT).
This D-REIT is designed to significantly expand Kenya’s affordable rental housing market by providing rental accommodation for young urbanites.
The ABTR D-REIT is launching with a USD 17 million (Ksh. 2.2 billion) in upfront committed equity from a consortium of leading financial institutions. This ensures immediate capacity to deliver projects.
The anchor commitments include:
- Private Infrastructure Development Group (PIDG): USD 10 million (Ksh. 1.3 billion).
- Acorn Holdings Limited: USD 5 million (Ksh. 645 million).
- Shelter Afrique Development Bank: USD 2 million (Ksh. 258 million).
“The launch of the ABTR D-REIT marks another important milestone in our journey to provide Urban Africa with rental housing solutions,” said Edward Kirathe, CEO of Acorn Holdings Ltd. “Uniquely, this time around, we will be launching the REIT with upfront committed capital from institutional investors, which continues to deepen our participation and innovation in the capital markets and wider Kenyan economy.”
The new housing projects will be built to the standards Acorn established with its successful student housing brands, Qwetu and Qejani. The properties will be IFC EDGE certified, ensuring they are climate-resilient and resource-efficient.
Claire Jarratt, PIDG Head of Investment Management for InfraCo, highlighted the dual impact: “The initiative will not only enable these individuals to live in closer proximity to their work and social lives, bridging the current gap in provision of suitable homes, but will also develop Kenya’s domestic capital markets, unlocking further capital to scale access to such housing.”
Mr. Thierno-Habib Hann, Shelter Afrique Development Bank Managing Director, praised the initiative: “This initiative is not only timely—it is vital… The search for affordable, well-located, and secure housing remains a daily struggle [for young professionals]. This continued partnership with Acorn reflects our firm commitment to bridging that gap.”
The ABTR D-REIT offers investors an opportunity to participate in large-scale, professionally managed rental property developments. This extends Acorn’s success in the REIT space, which includes the Acorn Student Accommodation D-REIT and I-REIT.
The establishment of the ABTR D-REIT was supported by Stanbic Bank Kenya Limited and SBG Securities Limited (Lead Transaction Advisor), NCBA Bank Kenya PLC (Trustee), and a strong consortium of legal and advisory firms.