US-based venture firm Kuramo Capital has bought an undisclosed equity stake in student hostels and homes firm owned by ex-UAP group managing director Dominic Kiarie.
Through subsidiary Consonance Kuramo Special Opportunities Fund 1, the firm said it will deploy Sh20 billion in the next five years towards development of a 10,000 hostels and 7,500 affordable houses by Century Developments.
Consonance Kuramo managing director Mobolaji Adeoye hailed the deal, saying it will avail quality developments that alleviate current shortage for decent student hostels and affordable housing.
“We are confident the strategic equity investment in Century Developments will create strong momentum and accelerate the development of affordable housing in the target markets,” said Mr Adeoye.
Speaking during the strategic equity investment ceremony in Nairobi, Mr Kiarie said the new deal was an affirmation of the business model that facilitates design, build and management of Purpose-Built Student Accommodation (PBSA) within institutions of higher learning. “The partnership with Consonance Kuramo marks an important milestone for Century Developments. It is a vindication of our real estate development and investments business model.
We will now accelerate the roll out of key real estate assets in the education and affordable housing sectors,” he said. Mr Kiarie said they will concentrate on projects within institutions, provision of affordable housing as well as industrial warehousing and in the health sector across East Africa.