The Capital Markets Authority (CMA) on Thursday gave its approval to Acorn to issue Student Accommodation Development Real Estate Investment Trusts and Income Real Estate Investment Trusts.
The investment facilities will be offered through a restricted public offer and will only be available to institutional and wealthy investors.
Acorn secured the greenlight to issue for purchase in Kenya units in both investment segments for a total minimum subscription of Ksh852 million and up to a maximum of Ksh8.5 billion
In a statement CMA, Chief Executive Wycliffe Shamiah said the regulator was satisfied with the D-REIT and I-REIT application and supporting documentation issued by the real estate company.
Acorn CEO Edward Kirathe said that the Development REITs will finance the development of Qwetu and Qejani Student Hostels.
As soon as the hostels are ready and rented out, the properties will be sold to the Acorn Student Accommodation Income REITs for long-term holds.
“The two REITs are expected to offer stable and long-term returns to investors,” Kiraithe said in the statement.
In November this year, CMA issued a REIT Manager license to Acorn.
The property development company also became the first to issue a green bond in Kenya in 2019. Acorn’s green bond is listed on the Nairobi Securities Exchange and the London Stock Exchange.
CMA is working towards positioning Kenya as the top investment destination in Africa as well as ensuring the availability of a wide variety of options for investors.