Acorn has received $17 million to build affordable rent-to-own rental properties for young professionals in ubarn centers.
The $17 million (KES 2.2 billion) has been committed by Private Infrastructure Development Group (PIDG), which has committed USD 10 million (KES 1.3 billion) in equity investment to anchor the new ABRT D-REIT. The new investment, made through PIDG’s project development solution, InfraCo, will come in alongside a further $2 million (KES 258 million) from Shelter Afrique Development Bank, and $5 million (KES 645 million) of equity from Acorn.
Stanbic Bank Kenya Limited and SBG Securities Limited acted as the Lead Transaction Advisor.
According to Edward Kirathe, CEO of Acorn Holdings, “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. 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. Uniquely, this time around, we will be launching the REIT with upfront committed capital from institutional investors, including Acorn, PIDG, and Shelter Afrique Development Bank.”
The Acorn Build-To-Rent D-REIT (ABTR D-REIT) will offer investors an opportunity to participate in large-scale, professionally managed rental property developments which are targeted at young urbanites who are looking for world-class, yet affordable housing in urban areas.
PIDG Head of Investment Management for InfraCo, 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 initiative is targeting accommodations in closer proximity to their work and social lives and also unlock further capital to scale access to such housing across the city.
Acorn already has a portfolio of 20 purpose-built student accommodation properties, all IFC EDGE certified, reflects PIDG’s commitment to developing sustainable and resilient cities in the face of climate impacts.
Like its student accommodation portfolio, Acorn’s homes will meet the needs of different market segments, those with higher incomes who find themselves in a mortgage gap, and those for whom more affordable, shared accommodation is needed. Conveniently located close to Nairobi’s key working hubs, the new housing will be green, safe, secure, and affordable.
The houses feature such as secure access systems, well-lit communal areas, and thoughtfully designed private spaces have been integrated to create an environment where women feel protected, empowered, and at home.
Nairobi is one of Africa’s fastest-growing cities, with a youthful population that is dynamic, entrepreneurial, and increasingly urban. Yet, for too many young professionals – graduates, entry-level employees, entrepreneurs – the search for affordable, well-located, and secure housing remains a daily struggle.
Acorn has been bridging that gap for student accommodation for Nairobi’s urban youth via Qwetu and Qejani brands, the new brands will help the firm enable young professional to access safe, affordable accommodation near their workplace, with innovative financing models, including green bonds and Real Estate Investment Trusts.
