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Kenya

Acorn Group to build 3 business hotels in Nairobi

ACORN-GROUPNAIROBI, Kenya, Aug 5 – Acorn Group Africa is planning to build three business hotels in Nairobi as the company prepares to build a chain of hotels in its Sh40 billion real estate projects in the country.

The projects will be located in the metropolitan area, Mlolongo, Kitengela, Jogoo Road and Kileleshwa.

Three of the projects will be integrated mixed use high density developments that will include shopping malls, offices, residential and business hotels.

“At the same time we are looking at commercial office buildings. We believe there is a big opportunity for property especially retail and residential by the middle and lower segment driven by sound economic demographic and social trends,” said Acorn Group Chief Executive Officer Edward Kirathe.

The company is also planning master planned communities in Kitengela and Lukenya.

The group is planning to put their commercial building in their Real Estate Investment Trusts (REITs) product that they are planning to launch in conjunction with British American Investment Company (Britam) while some will be for outright sale.

The projects was financed through third party investors and bank facilities with 60 percent coming from bank facilities, 20 percent through equity, put together in the past six months in partnership with the Asset Management team at Britam.

The flagship projects are Arboretum Square – expected to be a premier integrated lifestyle node in East Africa.

Others include a shopping mall and mixed use development in Mlolongo and Elono plains which is a 200 acre master planned development in Kitengela.

The 10 projects are expected to begin between October 2014 and March 2015 and end in the next four years.

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Last Year Britam acquired 25 percent stake in Acorn Group, as it seek to position itself in the property market.

Under the agreement Britam is to provide the financing for development while Acorn will focus on the actual development of the properties.

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