, NAIROBI, Kenya, Nov 14 – Britam has bought a 25 percent stake in Acorn Group, a property development and management consultancy firm, as it seek to position itself in the property market.
Speaking during the signing of the agreement, Britam Managing Director Benson Wairegi said they will provide the financing for development while Acorn will focus on the actual development of the properties.
“Through this partnership, Britam is positioning itself to tap into the opportunities offered by the exponential growth of the property market in Kenya and in East Africa,” Wairegi said.
Britam recently unveiled its real estate investment strategy which looks at extending investment across the different property divides in Kenya and in the region.
Construction has begun on the 31-storey Britam Tower in Upper Hill, at an approximate cost of Sh7 billion, set to be completed by 2015.
The company has also acquired land in the Ngong Area valued at over Sh300 million where it plans to put up commercial and residential units.
Kenya’s property market has continued to grow steadily in the last five years, with key sectors of the market providing strong capital appreciation and yields.
On the other hand, Acorn is managing a portfolio of 25 projects valued at over Sh20 billion in Kenya, Uganda and South Sudan.
“The Britam-Acorn deal brings together two strong brands with proven track record, expertise and experience in various key components of the real estate industry including execution capability, capital raising and investment structuring,” Acorn Group CEO Edward Kirathe said.
Some of the developments by Acorn Group’s include the Head Office for Coca-Cola East and Central Africa in Upper Hill, Deloitte East Africa Head Office on Waiyaki Way, Equity Centre in Upper Hill, The Waterfront Gardens estate on Waiyaki Way, new abattoir facilities for Farmers Choice and Nakawa Business Park in Kampala.