[Kenya] CMA approves student accommodation development and income REITs for Acorn
The Capital Markets Authority (CMA) approved the Acorn Student Accommodation Development Real Estate Investment Trust (ASA D-REIT) and Income Real Estate Investment Trust (ASA I-REIT) sponsored by Acorn Investment Management (Acorn).
Wyckliffe Shamiah, CEO, CMA: “The Authority is satisfied with the D-REIT and I-REIT application and supporting documentation. Approval is granted to Acorn to issue for purchase in Kenya units in both the ASA D-REIT and ASA I-REIT respectively for a total minimum subscription of KES 852 million and up to a maximum of KES 8.5 billion. The approval is granted in accordance with Section 30 B of the Capital Markets Act and Regulation 37 of the Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013 (REITs Regulations).”
Edward Kirathe, CEO, Acorn: “This is yet another significant milestone for Acorn to have received CMA approval for our student accommodation D-REIT and I-REIT. The ASA D-REIT will develop our Qwetu and Qejani student hostels and, once completed and rented out, will be sold to the ASA I-REIT for long-term hold. The two REITs are expected to offer stable and long-term returns to investors and will for now only be offered to institutional and sophisticated investors through a restricted public offer. Acorn will retain a significant combined stake in both REITs.”
The approval of the ASA D-REIT and ASA I-REIT follows the issuance of a REIT Manager license to Acorn in November 2020. Acorn also issued the first Green Bond in October 2019, listed on both the Nairobi Securities Exchange and the London Stock Exchange in January 2020.
