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Cytonn Eyes Real Estate Investment Trust Funds For Ridgeways, RiverRun Projects

Cytonn has traditionally relied on private sector funding

Cytonn CEO Edwin Dande. [PHOTO/ COURTESY]

Cytonn Investments has filed an application with the Capital Markets Authority (CMA) to register a Development Real Estate Investment Trust (DREIT) seeking to raise Ksh2 billion of capital.

In a statement to newsrooms, the company said the DREIT, which is structured to pay a coupon over the life of the development, will be deployed for the first phases of two real estate projects, the Ridge in Ridgeways, and RiverRun Estates in Ruiru.

“This capital raise is envisioned to help Cytonn diversify funding sources for their real estate development pipeline, which has a project value of over Ksh82 billion,” said the company.

Read: A Look Into The Success Of Cytonn’s Alma Project Amid Sector Turbulence

Cytonn has traditionally relied on private sector funding, which while easier to access, has been more expensive. This has thus necessitated the development of alternative sources of funding, allowing development of institutional-grade real estate at a relatively lower cost.

“Following the acquisition of financing for bank debt for The Alma from SBM Bank, Cytonn is now pursuing regulated DREIT funding,” added the statement.

The Ridge is a comprehensive 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.

On the other hand, RiverRun is a mixed used community on 100 acres in Ruiru, with a dedicated affordable housing component.

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Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.
Email: [email protected]

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