Acorn Investment Management Limited has been granted a Real Estate Investment Trust (REIT) manager license by the Capital Markets Authority (CMA) following the fulfillment of applicable regulations. The license issuance follows a decision by the firm to liquidate its 2019 green bond into unit trusts.
As a REIT manager, Acorn Holding will own, operate, and finance income-generating real estate by pooling capital from numerous investors. In return, the investors will earn dividends from the real estate without having to manage or buy the properties themselves.
Acorn Investment Management Limited (AIML) is a wholly-owned subsidiary of Acorn Holdings set up to manage REITs in Kenya. In September, Acorn Holdings rolled out an 8-week roadshow to woo fund managers to its Acorn student accommodation REITs to be established by the end of this year.
The minimum investment in Acorn’s Income REIT is Ksh14 million and Ksh6 million in the Development REIT. InfraCo Africa will be the anchor investor while Acorn Investment Management Limited will be the REIT manager with Co-operative Bank Plc as the Trustee.
In its three-year plan, Acorn plans to set up the D-REIT and I-REIT, anchored by InfraCo Africa, where institutional investors will be offered an initial stake with a blended return.
Acorn focuses on developing and managing rental accommodation starting with purpose-built student accommodation for university and college students.