Cytonn Investment Limited is a brick baked in the kiln of defiance; that it takes to hitting people’s heads even when it contains structural weaknesses within, may have it crack and crumble at the behest of the capital markets regulator.
While the real estate company has been fending off angry investors who claim they have defaulted on their payments while at the same time battling the regulator over the affairs of its real estate funds, one company which shares an origin story with Cytonn has been making one of the most exclusive property sales in the Kenyan market.
Acorn has been selling a Sh4 billion real estate trust for developing new units through D-Reit and another Sh4.1 billion for an I-Reit, equity investments in its projects.
Accorn has delivered Qwetu student accommodation and is now targeting bachelors with proposed development of first time home owners. It has been able to raise money from the world’s top institutional investors including issuing the first green bond in Kenya and listing it on the London Stocks Exchange and the Nairobi bourse.
How the two companies ended up with very different fates may be a matter of execution, disparate fortunes and how their top men chose to bounce back from the 2013 gamble that set them on their current path.
What many do not know is that these two real estate developers have some things in common, the concept, owners and a history that dates back to 2013 when they were first mooted to the country’s Murang’a billionaires from the famous Rwathia village.
Mr Edward Kirathe CEO Acorn and Edwin Dande, chief executive Cytonn were working together under very different circumstances for a partnership to deliver housing projects to Britam. At the time, Dande was managing director for British-American Asset Managers Limited.
Less confrontational manner
In November 2013 the two upstarts eager to make their mark and their fortune presented their joint venture ideas to the older owners of capital, Dr Benson Wairegi, Peter Munga and Mr Jimnah Mbaru among other top Britam owners at a two day reclusive retreat.
"The express purpose was to understand the real estate industry and business context and the opportunity to discuss and agree on the strategy and structure to unlock the opportunity; to review the expectations, roles and responsibilities of each party in this partnership," court documents in court cases against Cytonn reads.
The partnership led to the first attempt to bring high yielding […]