Property developer Acorn has obtained regulatory approval for a Sh2.2 billion housing fund that will build high-end rental studio and one-bedroom apartments in Nairobi, targeting young professionals
The fund seeks to build the units in key business areas in Nairobi, with young professionals getting into the job market and not ready for a mortgage being the target.
Acorn CEO Edward Kirathe said the approval from the Capital Markets Authority (CMA) marks an important step in expanding the supply of safe and affordable housing for young urban workers who often struggle to find suitable homes in well-located neighbourhoods.
The financiers of the fund include global multilateral organisation Private Infrastructure Development Group (PIDG), which is injecting Sh1.3 billion, Shelter Afrique Development Bank will pump Sh258 million and Acorn will provide Sh645 million equity.
“The launch of the Acorn Build To Rent (ABTR) D-Reit (Development Real Estate Investment Trust) marks another important milestone in our journey to provide urban Africa with rental housing solutions,” said Mr Kirathe.
“The ABTR D-Reit will initially focus on providing purpose-built rental housing for young urbanites between 20-30 years old who work in business hubs of Nairobi.”
The new vehicle becomes Acorn’s latest entry into the Reits space, offering local and international investors a chance to back professionally managed rental units positioned for affordability, proximity to workplaces, and modern amenities.
The funding marks a continuation of development financing partnerships for Acorn, which has previously worked with PIDG on student housing ventures and capital market instruments, including green bonds and Reits.
The properties developed under the new Reit will adopt the standards used in Acorn’s student housing portfolio, including the IFC EDGE green-building certification aimed at improving climate resilience and resource efficiency.
The units will cater to different income levels, including tenants who can afford studio units and those who prefer shared accommodation.
Shelter Afrique MD Thierno-Habib Hann said their investment was aligned with its mission to expand quality housing for Africa’s urban youth, noting that many professionals struggle to find affordable and secure homes near their places of work.
“Acorn has demonstrated a clear vision and a proven ability to deliver targeted housing solutions that meet the needs of Nairobi’s urban youth… At Shelter Afrique, we understand that housing is not just about buildings, it’s about opportunity,” said Hann.
Acorn’s partnership with global financiers has grown since 2019, supporting the development of student and youth accommodation and raising $31.36 million (Sh4.1 billion) from Kenya’s capital markets to date.
