Qwetu and Qejani developer, Acorn, has secured CMA approval to launch a new Build-To-Rent D-REIT backed by KSh 2.20Bn, strengthening its push into Nairobi’s affordable rental market for young workers.
- •The licence marks yet another step for a company that has grown from student housing into East Africa’s largest purpose-built rental operator with more than 10,500 operating beds and close to 9,000 beds in the pipeline.
- •The new Acorn Build-To-Rent Development REIT will focus on rental homes for young urban workers aged between 20 and 30 who work across Nairobi’s major job hubs.
- •Acorn has developed a vertically integrated model covering development, operations, asset management, and capital markets structuring.
The Build-To-Rent D-REIT is expected to attract further private and institutional capital once the first developments reach completion. Acorn plans to grow the REIT into a long-term rental platform that complements its student accommodation assets and expands its role in Kenya’s housing sector.
The REIT starts with committed institutional capital:
- •KSh 1.29Bn (US$ 10.00Mn) from the Private Infrastructure Development Group through its InfraCo vehicle.
- • KSh 258.48Mn (US$ 2.00Mn) from Shelter Afrique Development Bank
- •KSh 645.00Mn (US$ 5.00Mn) from Acorn.
The REIT will finance purpose-built rental units that match the standards seen in Acorn’s student accommodation portfolio.
PIDG noted that Acorn’s track record in student housing made the new REIT viable. It highlighted the impact of delivering homes near workplaces, which supports productivity and reduces transport strain. Shelter Afrique described the project as critical for Nairobi’s growing base of entry-level employees and entrepreneurs who struggle to secure affordable, well-located units.
Expansion of Acorn’s Model
Since 2001, the company has delivered more than 50 projects valued above US$ 550Mn. In 2019 it issued Africa’s first green housing bond, listed on the Nairobi Securities Exchange and cross-listed in London. In 2021 it launched two student housing REITs that have raised more than US$ 31.36Mn (KSh 4.05Bn) to date.
The new D-REIT extends this platform to a broader rental segment. Part of the design includes deliberate attention to safety for young female professionals, including secure access, well-lit communal areas, and private spaces suited to urban living. The properties also incorporate accessibility features for persons with disabilities.
Stanbic Bank Kenya and SBG Securities are acting as lead transaction advisors.
