Acorn Lists Reits on Nairobi Bourse, Investors to Reap 18% In Returns

Acorn Student Accommodation Development REIT (ASA D-REIT) and Acorn Student Accommodation Income REIT (ASA I-REIT).

Qwetu Accommodation Service Center under Construction. PHOTO: Alok Sharma

Acorn Investment Management Limited Wednesday listed two of its real estate investment trusts (Reits) on the Nairobi Securities Exchange (NSE) unquoted securities platform (USP).

They include Acorn Student Accommodation Development REIT (ASA D-REIT) and Acorn Student Accommodation Income REIT (ASA I-REIT).

The Unquoted Securities Platform (USP) is the first automated solution that will facilitate the trading of shares of unquoted companies in Kenya.

This is part of the Ksh 2.5 billion raised in new funding in the projects. 

“These Reits are projected to give long-term investors an 18 per cent return over a 10-year hold basis which is significantly above most of the securities available locally,” said Acorn Holdings Africa CEO Edward Kirathe. 

“We have given investors the opportunity to participate in development and investment returns alongside Acorn in a well-governed structure without taking on risks involved in direct real estate investing.” 

Acorn’s current portfolio under the Qwetu Student hostels comprises an estimated 3000 beds and is set to grow the count to 6500 beds in the near term.

The USP-listed Reits are the first confirmed listings on the NSE private placement tab.

Acorn became the first local outfit to list a shilling denominated bond on the London Stock Exchange (LSE) in January last year from where it raised Ksh.4.3 billion.