Acorn Student Accommodation Development REIT (ASA D-REIT) sold one of its properties, Qwetu Aberdare Heights II, to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion. 

The property has 630 beds and is located near USIU. It is the fourth asset that ASA I-REIT has acquired from ASA D-REIT in the past three years, bringing its total portfolio to seven properties with 4,450 beds. The sale also increased the total asset value of ASA I-REIT to Sh10.5 billion.

ASA D-REIT used part of the proceeds to repay Sh600 million of the Acorn Green Bond, which has a total value of Sh5.7 billion and matures in November 2024. 

ASA D-REIT has now paid Sh3 billion of the bond. ASA D-REIT is still developing 12 projects, including Qwetu and Qejani Karen, and Chiromo, with a total asset value of Sh12 billion.

Acorn Investment Management Limited Acting Executive Director Mathew Maina said that the ASA REITS have shown the resiliency of the student accommodation sector and Acorn’s business model. 

Maina also announced that ASA D-REIT paid its first dividend of Sh240 million to investors, with a dividend yield of 3.4 per cent, as per the offer memorandum issued in 2021. 

“The payment of the first dividend by the ASA D-REIT is a significant boost to the returns of the investors who have placed their confidence in Acorn and this nascent asset class Given the strong pipeline of projects under development, the ASA D-REIT expects to pay dividends to investors annually going forward,” added Maina.

Acorn claims to be the largest purpose-built student accommodation (PBSA) provider in Africa, with a portfolio of 20,000 operating and developing beds by the end of 2023.


 

Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.

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