Acorn Investment, a subsidiary of property developer Acorn Holdings, has received a licence to act as a Real Estate Investment Trust (Reit) manager, setting the stage for the listing of Qwetu student hostels it is building in Nairobi.
Industry regulator Capital Markets Authority (CMA) said on Monday that the real estate firm had met all the legal requirements.
A Reit manager is a company licensed to provide real estate management services to a real estate investment trust.
“Our immediate vision at Acorn is to build a best-in-market business that profitably develops, owns and manages the most sought-after purpose-built rental accommodation for young people in Nairobi and ultimately to become Africa’s leading rental housing business. This approval is an important milestone on this journey,” said Edward Kirathe, the CEO of Acorn Holdings.
Acorn is planning to offer a development real estate investment trust (D-Reit) worth Sh4 billion through which it will sell part of its ownership in the students' hostels.
A D-Reit is an investment vehicle that is principally involved in the development and construction of properties for sale and/or rental. It must have a minimum of seven investors and Sh5 million minimum subscription offer.
Acorn has already completed three hostels in Parklands, Ruaraka and along Jogoo Road. It plans to build six other projects in various locations including Nairobi West and Kasarani.