CMA approves Student Accommodation Development and Income REITs for Acorn Investment Management Limited
Nairobi, 10 December 2020……The Capital Markets Authority (CMA) has 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 Limited (Acorn).
The CMA Chief Executive, Mr. Wyckliffe Shamiah said; “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 of Acorn observed; “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.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
BACKGROUND INFORMATION ON ACORN INVESTMENT MANAGEMENT LIMITED (AIML)
Acorn Investment Management Limited (AIML) is a wholly owned subsidiary of Acorn Holdings Ltd. and has been set up to manage REITs in Kenya, starting with the Acorn Student Accommodation REITs. Acorn is focused on becoming the premier multi-asset rental housing developer, manager, and integrator in Kenya, starting with purpose-built student accommodation (PBSA), for university and college students. https://acornholdingsafrica.com/