Acorn Holdings raises Ksh.7.5B for student housing projects

Student accommodation developer Acorn Holdings has raised a total of Ksh.7.5 billion following its issuance of two real estate investment trusts (REITS) to investors.

On one hand, the firm has raised Ksh.3.3 billion from its income REIT from which unit holders will derive income from revenues earned by the company’s student housing projects.

Meanwhile, Acorn’s development REIT has yielded Ksh.4.2 billion in proceeds and has subsequently allocated units to successful applicants.

Neither the investment nor development REIT will be admitted to any trading exchange with Acorn opting to involve investors through the Nairobi Securities Exchange (NSE) over the counter (OTC) platform.

In February, the developer listed the pair of REITS on the NSE unquoted securities platform (USP) as the firm sought to expand projects within the student’s accommodation space.

The listing of the REITS followed the conversion of bonds held into more trade-able and liquid units.

Acorn’s current portfolio under Qwetu student hostels is estimated at 3000 bed with the company eyeing growth of the segment to 6500 beds in the near-term.

The firm became the first local outfit to issue a shilling denominated bond abroad, raising Ksh.4.3 billion in the London Securities Exchange (LSE).

Acorn has also become the first entity to set up a student accommodation REIT on the African continent.