3rd December 2022

Cytonn Asset Managers awarded licence to operate as a REITS Manager

Cytonn Investments Management Plc says it will appeal against the High Court directive that dismissed their petition that sought to challenge the Capital Markets Authority directive limiting their projects under its asset managers unit to 10 per cent.

Edwin H. Dande - Chief Executive Officer at Cytonn Investments speaking during the Investments Analysts and Investors Open Day.

Cytonn Asset Managers has received a license from the Capital Markets Authority to operate as a REITs (Real Estate Investment Trusts) Manager.

The asset management subsidiary of Cytonn Investments Plc becomes the ninth Kenyan fund manager to be granted a REIT Manager License by CMA.

REITS are regulated investment vehicles that allow collective investment in real estate where both retail and corporate investors pool their funds and then engage in real estate projects.

“Financing structures such as REIT’s and real estate backed funds such as high yield fund, offer a capital markets based solution to raising funds towards real estate development, and also a chance for eligible investors to invest and gain attractive yields, capital appreciation and above-average total returns” said Mr. Maurice Oduor, Principal Officer, Cytonn Asset Managers, on receiving the REIT Manager License.

Deepening of the capital markets remains a key priority for Cytonn Asset Managers and the REIT Managers license is another positive step forward towards regulated product development.

“This is an important milestone for CAML because it allows us to bring investment grade real estate offerings to a wider pull of clients through regulated capital markets vehicles. This will be the first real estate backed high yield fund in the market and it demonstrates that our capital markets are open to innovation” said Mr. Edwin Dande, Chief Executive Officer, Cytonn Investments.

Cytonn Asset Managers in 2018 was granted a license to manage retirement benefit schemes funds by the Retirement Benefits Authority (RBA).