The Capital Markets Authority has given approval to Acorn to issue Student Accommodation Development Real Estate Investment Trusts and Income Real Estate Investment Trusts. The investment instruments will be offered through a restricted public offer and will only be available to institutional and sophisticated investors.
Acorn CEO Edward Kirathe said that the Development REITs will finance the development of Qwetu and Qejani Student Hostels. Once the hostels are ready and rented out, the properties will be sold to the Acorn Student Accommodation Income REITs for long-term holds.
“The two REITs are expected to offer stable and long-term returns to investors,” Acorn CEO said in a press statement.
Kenya’s Capital Markets Authority said it is satisfied with the REITs application and the documents provided. The authority is working to develop Kenya’s capital markets to meet the dynamic needs of investors and developers.
In November this year, CMA issued a REIT Manager license to Acorn. The property development company also became the first to issue a green bond in Kenya in 2019. Acorn’s green bond is listed on the Nairobi Securities Exchange and the London Stock Exchange.
See also: CMA Grants REIT Manager License to Acorn Investment Management Ltd
