Cytonn Investments is seeking approval from the Capital Markets Authority (CMA) to set up a Development Real Estate Investment Trust (D-Reit) in order to raise Ksh. 2 billion that will be used to finance the firm’s real estate projects.
According to Cytonn Real Estate Investment Analyst Bryan Gitia – in a news report by the Business Daily- the D-Reit will be used in the development of the firm’s Phase 1 projects at The Ridge and RiverRun estates. The D-Reit will also augment Cytonn’s funding for its real estate projects whose value is more than Ksh.82 billion.
“The Ridge is a comprehensive aspirational lifestyle development on 10 acres in Ridgeways where stage one of the development is complete — including land acquisition, concept, foundation and is 50 percent presold; funds will go towards the second stage of superstructures construction. RiverRun is a master-planned mixed-use community on 100 acres in Ruiru, with a dedicated affordable housing component,” Mr. Gitia said according to the Business Daily.
The move by Cytonn comes just two weeks after another major player in the real estate space, Centum, inked a home financing deal with Barclays Bank of Kenya that will see the lender finance buyers interested in acquiring Centum’s real estate properties in Kilifi and Nairobi.
The home financing agreement will cover both completed and off-plan units in Centum’s real estate developments – the Palm Ridge Estate in Kilifi County and Nairobi’s Riverbank Apartments and Cascadia Apartments.
Cytonn has been stepping up competition in the development of real estate projects in recent times. In July this year, Cytonn handed over phase 1 of its Ruaka based residential development dubbed the Alma, comprising of one, two and three bedroomed units to buyers. Phase 1 of the project is 100 per cent sold out with buyers having parted with Ksh.6.3 million Ksh. 9.4 million and Ksh. 12 million to secure a one, two and three bedroomed unit respectively.