Taaleri Group has acquired the option to subscribe for up to 20 percent of Cytonn a transaction that enhances the two firms relationship beyond project finance to shareholding.
Speaking at the signing of the agreement, Edwin H. Dande, CEO of Cytonn Investments, noted that the transaction affirms market confidence in the Cytonn brand and unique business model, and provides a strong anchor investor as they prepare for IPO which they hope to complete in 2019.
“We have already engaged with two sets of transaction advisors, in Nairobi and London, to explore a local listing either at the Nairobi Securities Exchange, NSE, or a listing at the London Stock Exchange, LSE, respectively. The ultimate listing jurisdiction will depend on valuation, investor interest and ease of listing. We also hope to broaden our partnerships by bringing on board one additional local or global anchor institutional investor at the IPO.”
In 2017, Cytonn Investments hinted at listing on a global exchange to get cheaper funding alternatives for its real estate projects.
Mr. Juhani Elomaa, CEO of Taaleri Group, who recently visited Cytonn’s real estate projects noted that “Through Cytonn, Finnish Pension Funds and Investors have not only earned attractive returns that are not available in the developed markets, but we have contributed to growing the Kenyan economy, creating jobs, and driving the deepening of capital markets through structured finance transactions. The share options agreement for a 20% stake is an opportunity to deepen the relationship beyond project finance to shareholding.”
A day well spent with Mr. Juhani Elomaa, CEO of @Taaleriteam, and the Taaleri Africa Team, catching up on projects and exploring further areas of collaboration. #InvestSharp! pic.twitter.com/8tSETUQO0n
— Cytonn Investments (@CytonnInvest) October 5, 2018
This will be the 5th time the Finnish firm will be investing with Cytonn, having already committed over Kshs 5.0 bn towards projects and investments with Cytonn, namely The Alma, The Ridge, Situ Village and Amara Ridge, which has already been delivered to homeowners. In addition to their investments, Taaleri has already successfully received back its investments from Amara Ridge and The Alma, underlining Cytonn’s commitment to deliver above-average returns in real estate for global institutional investors.
In June 2018, Cytonn increased funding for their real estate projects by Ksh 2.1 from their institutional partners, Taaleri, totaling to Ksh 5 Billion in the form of mezzanine financing with a tenure of five years.
Taaleri is a financial group, whose parent company Taaleri Oyj’s shares are listed on the NASDAQ stock exchange. Taaleri manages investments worth Kshs 813 bn and provides funding in the capital-intensive real estate sector in Africa through two Africa dedicated real estate funds.