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Kenya’s Cytonn gets Sh2.1bn ($21m) financing with plans to tap into affordable housing

Cytonn gets Sh2.1bn financing with plans to tap into affordable housing

This will be the fourth time the Finnish firm is investing with Cytonn Investments having already committed over Sh3 billion towards projects and investments and having already successfully exited from two other investments, namely Amara Ridge in Karen and The Alma in Ruaka/FILE This will be the fourth time the Finnish firm is investing with Cytonn Investments having already committed over Sh3 billion towards projects and investments and having already successfully exited from two other investments, namely Amara Ridge in Karen and The Alma in Ruaka.

The funds will be directed towards development projects, such as the construction of the Ridge, a Sh12 billion mixed-use development by Cytonn located in Ridgeways.

The funding will take the form of mezzanine financing, and will have tenure of five years.

Head of Real Estate Private Equity at Cytonn Investments Shiv Arora says Taaleri’s investment comes at an opportune time, when the firm is set to focus on affordable housing.

“Our partnership with Taaleri is testament to our strategy of connecting global capital seeking attractive returns, with the attractive investment opportunity in Kenya and the region. Through all of Taaleri’s investments with Cytonn, we have been able to create over 2,000 jobs both directly and indirectly and delivered inspiration and institutional-grade real estate to the market. We shall continue investing in mid-income housing even as we ramp up our efforts in affordable housing,” he said.

He said the firm has already formed the Cytonn Centre for Affordable Housing, a standalone initiative working to put together a consortium that will handle affordable housing projects.

“This Sh2.1 billion investment is the first investment with Cytonn from our second Africa fund, and we are exploring further areas to deploy capital with Cytonn,” said Antti-Jussi Ahveninen, the Head of Real Estate Funds, Africa at Taaleri.

Taaleri is a financial group whose parent company Taaleri Oyj’s share is listed on the stock exchange.

The group consists of three business segments – Asset Management, Finance and Energy.

Taaleri manages Sh658.5 billion and provides funding in the capital-intensive real estate sector in Africa.

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