NAIROBI, Kenya, Nov 17 – Acorn Holdings has secured approval from the Capital Markets Authority (CMA) to establish a Build-To-Rent Development Real Estate Investment Trust (D-REIT), unlocking Sh2.2 billion in capital commitments to scale rental housing for young professionals in Nairobi.
The Acorn Build-To-Rent D-REIT (ABTR D-REIT) aims to develop purpose-built units for workers aged 20 to 30, a segment increasingly squeezed by high urban rents and limited supply of affordable, well-located housing.
The structure mirrors Acorn’s push to expand beyond student accommodation into rental housing designed for early-career earners.
The D-REIT has attracted USD 17 million (Sh2.2 billion) in committed capital. The Private Infrastructure Development Group (PIDG) leads the investment with USD 10 million (Sh1.3 billion) through its InfraCo unit. Shelter Afrique Development Bank follows with USD 2 million (Sh258 million), while Acorn will contribute USD 5 million (Sh645 million). Stanbic Bank Kenya and SBG Securities served as lead transaction advisors.
“The launch of the Acorn Build To Rent (ABTR) D-REIT marks another important milestone in our journey to provide Urban Africa with rental housing solutions,” said Acorn CEO Edward Kirathe.
“The ABTR D-REIT will initially focus on providing purpose-built rental housing for young urbanites between 20-30 years old who work in the formal and informal business hubs of Nairobi.”
The approval offers Acorn a stronger foothold in the rental housing market, building on its experience through the Qwetu and Qejani brands.
Investors are increasingly eyeing income-generating residential assets as demand grows among young urban workers.
PIDG’s Claire Jarratt said, “We are delighted to be building on our strong relationship with the team at Acorn to launch a new product in the Kenyan housing market a REIT to deliver purpose-built, affordable housing for young urbanites.”
The units will be developed to IFC EDGE green-building standards and located close to major employment hubs.
They will target tenants priced out of mortgages as well as those seeking shared, lower-cost living options.
Shelter Afrique Development Bank Managing Director Thierno-Habib Hann praised Acorn’s use of green bonds and REITs, noting their role in attracting new capital into the sector.
Acorn and PIDG have previously raised USD 31.36 million through similar instruments.
The D-REIT is expected to mobilize additional private and institutional capital as Acorn grows its rental portfolio.
A consortium of advisors, including NCBA Bank as trustee, TripleOKLaw, Gowling WLG, Norton Rose Fulbright, Viva Africa Consulting, and PwC, supported the transaction.
Visited 195 times, 1 visit(s) today
