Finnish firm gives Cytonn Sh400m real estate funding
Cytonn CEO Edwin Dande with chief investment officer Elizabeth Nkukuu. PHOTO | FILE
What you need to know:
Cytonn has now raised Sh2.5 billion, up from Sh2.1 billion from the Finnish PE firm, the main partner for its real estate projects.
Private equity (PE) firm Cytonn has received Sh400 million in additional funding for its real estate projects from its Finnish partner Taaleri.
Cytonn has now raised Sh2.5 billion, up from Sh2.1 billion from the Finnish PE firm, the main partner for its real estate projects.
The funds came from Taaleri’s first fund and Cytonn expects additional funding the firm which is raising cash for its second fund.
“They are raising fund number 2 and we expect that they will be able to allocate even more money,” Cytonn chief executive Edwin Dande told the Business Daily.
In its strategy, Cytonn has identified Sh56 billion development projects, majority of which target the mid and low-income segments of the housing market.
This year Cytonn is planning to develop two residential projects in Ruaka and the Karen suburb of Nairobi worth Sh4 billion and Sh2.5 billion respectively.
Its maiden real estate project was a high-end residential development in Karen that broke ground in 2015.
Real estate developers, financiers, private equity firms and state agencies are warming up to massive housing targeting the mid and low income segments due to saturation in the high-end market which has traditionally been the most preferred.
Pan African housing lender Shelter Afrique is financing developer Kingspride which is putting up two apartment complexes in Ruaka and Kiambu towns that will have a combined 440 units.
The twin developments dubbed Glenwood Gardens are valued at Sh2.6 billion. Shelter Afrique is also financing the second phase of Everest Park, a project that will comprise 200 housing units and a commercial centre in Athi River town.
Investment is also moving towards satellite towns and other major cities where land prices are lower than Nairobi. Access in these towns has been made easier due to infrastructure development.
Rapid urbanisation in these territories is one reason that PE firm Phatisa says that it chose Nakuru for its latest housing project adding that the town’s fast growth that has created a high demand for quality residential houses makes it an ideal market.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
