Cytonn secures Sh650m for Ruaka project
By Moses Omusolo | March 19th 2019
A Cytonn Investment has turned to bank debt to help complete its real estate project at Ruaka on the outskirts of Nairobi.
The investment firm has taken a Sh650 million from State Bank of Mauritius (SBM Bank Kenya) to supplement its private equity financing for the Alma development.
Speaking in Nairobi yesterday, Cytonn Chief Executive Edwin Dande said the partnership seeks to bring in long-term debt to complement its private markets funding from sources such as Cytonn High Yield Solutions (Cytonn HYS) and institutional funding from Taaleri of Finland.
“This is the first bank loan for Cytonn Investments which has been raising capital from institutional investors such as Taaleri, who have invested Sh5 billion with us, and high net worth individuals who have invested over Sh11 billion through Cytonn HYS,” he said.
Antti-Jussi Ahveninen from Taaleri said bank funding guarantees completion and delivery of real estate projects.
The Alma is a Sh4 billion residential mixed-use development comprising 477 residential units and a commercial space located in one of the fast-growing towns in Kiambu County.
The funding comes as Cytonn pushes to complete part of the two-phase project later this year.
SBM Bank, the Mauritius lender which bought out Chase Bank assets, said the venture opens up its push for real estate exposure to institutional grade investment.
SBM Deputy Chief Executive Jotham Mutoka said the funding is a testament to the firm’s belief in Cytonn’s strategy.
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