Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Cytonn to tap new investment after acquiring REIT licence

Having the REIT Manager license will allow CAML REIT’s source funds to build or acquire real estate assets, which they sell to generate development returns, or rent to generate income./FILE

NAIROBI, Kenya, Feb 15 – Cytonn Investments has been granted a Real Estate Investment Trust (REIT) Manager License by the Capital Markets Authority (CMA).

The move comes after the firm was recently granted a license to manage retirement benefit schemes funds by the Retirement Benefits Authority (RBA) in December 2018.

The new license will allow the firm to register their own REIT products, which include Development REIT’s and Income REIT’s, allowing them to access a pool of investor capital that wishes to take specific real estate exposure.

Cytonn Asset Managers Limited (CAML) becomes the ninth Kenyan fund manager to be granted a REIT Manager License by CMA.

Having the REIT Manager license will allow CAML REIT’s source funds to build or acquire real estate assets, which they sell to generate development returns, or rent to generate income.

The income generated is then distributed to the shareholders at the end of a financial year.

Additionally, CMA consented for CAML to proceed and register a number of Unit Trust Funds, the Cytonn Africa Financial Services Fund, Cytonn USD Money Market Fund and Cytonn High Yield Fund.

“This is an important milestone for CAML because it allows us to bring investment grade real estate offerings to a wider pull of clients through regulated capital markets vehicles. This will be the first real estate backed high yield fund in the market and it demonstrates that our capital markets are open to innovation” said Edwin Dande, Chief Executive Officer, Cytonn Investments.

Deepening of the capital markets remains a key priority for Cytonn Asset Managers and the REIT Managers license is another positive step forward towards regulated product development.

“A key challenge facing the real estate sector is access to financing away from the traditional sources of funding, which include bank funding. Financing structures such as REIT’s and real estate backed funds such as high yield fund, offer a capital markets based solution to raising funds towards real estate development, and also a chance for eligible investors to invest and gain attractive yields, capital appreciation and above-average total returns” said Maurice Oduor, Principal Officer, Cytonn Asset Managers, on receiving the REIT Manager License.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...