Markets & Finance

Cytonn Investments causes a storm in the real estate sector

dande

Cytonn CEO Edwin Dande. FILE PHOTO | DIANA NGILA

If anyone caused a storm in real estate investment circles this year, that was new boy Cytonn Investments headed by Edwin Dande, the former head of financial services group British American Asset Managers (BAAM).

Cytonn Investments has embarked on a series of real estate projects confounding sceptics who doubted the company’s initial valuation of Sh1.1 billion.

The real-estate arm of the firm - Cytonn Real Estate - started off with Amara Ridge, a gated community construction project in Karen, Nairobi. The high-end houses are being put up on a five-acre piece of land.

The company has projects planned in other areas including the fast-growing middle-income town of Ruaka in the outskirts of Nairobi.

Recently, BAAM dropped the multibillion shilling claims it had lodged against Acorn, which had handed over four major development projects to Cytonn. Acorn renounced claims to the projects and gave them back to BAAM, which had been its partner in the projects.

READ: Britam abandons claim against Acorn in Sh5bn out-of-court settlement

However BAAM said it would still pursue criminal charges against Mr Dande and three other employees who had left the firm. BAAM had accused Mr Dande and the employees of acting against the company’s interests during their tenure.

Mr Dande said this year his company had come up with its own projects and was no longer interested in those linked to Acorn which had raised a storm.

The whole saga was seen in some circles as old money – comprising the likes of Benson Wairegi and other owners of Britam Holdings – fighting new money comprising the group headed by Mr Dande.