Market News

Cytonn goes for Sh2bn D-Reit to fund projects


A construction site. FILE PHOTO | NMG

Cytonn Investments has applied for a Development Real Estate Investment Trust (D-Reit) at the Capital Markets Authority seeking to raise Sh2 billion.

D-Reit meant to diversify real estate funding is expected to boost Cytonn sources for its real estate development pipeline with a project value of more than Sh82 billion.

Cytonn Real Estate Investment Analyst Bryan Gitia said the funds would be deployed in the development of Phase 1 of The Ridge and Phase 1 of RiverRun estates.

“The Ridge is a comprehensive aspirational lifestyle development on 10 acres in Ridgeways where stage one of the development is complete — including land acquisition, concept, foundation and is 50 percent presold; funds will go towards the second stage of superstructures construction,” he said.

“RiverRun is a master-planned mixed-use community on 100 acres in Ruiru, with a dedicated affordable housing component.”

Mr Gitia said the capital raise connects landowners with institutional capital and development capability onto one platform.