Cytonn Investments, an alternative investment management firm in the East African Region, with a focus on real estate, financial services, education and hospitality, has today secured an additional KES 2.1 billion in funding from their institutional partners, Taaleri of Finland.
Taaleri is a financial group whose parent company Taaleri Oyj’s share is listed on the stock exchange maintained by Nasdaq Helsinki Oy.
The Taaleri Group consists of three business segments: Asset Management, Finance and Energy. Taaleri manages 5.6 Bn Euros (KES 658.5 Bn) and provides funding in the capital-intensive real estate sector in Africa.
The funding forms part of Taaleri’s investment in Africa’s real estate sector through their second Africa real estate fund, and will be channeled towards the development of Cytonn’s real estate projects.
The funding will take the form of mezzanine financing, and will have a tenure of five-years.
This will be the fourth time the Finnish firm will be investing with Cytonn Investments, having already committed over KES 3.0 Bn towards projects and investments with Cytonn, and having already successfully exited from two other investments, namely Amara Ridge in Karen and The Alma in Ruaka.
The funds will be directed towards development projects, such as the construction of The Ridge, a KES 12.0 billion mixed use development by Cytonn located in Ridgeways, Nairobi County.
Speaking at the signing of the additional funding, Shiv Arora, Head of Real Estate Private Equity at Cytonn Investments, noted that “We are thankful to Taaleri for the continued support they have shown to the Cytonn brand, and also to the Cytonn Team for continuing to exceed Taaleri’s investment expectations. Our partnership with Taaleri is testament to our strategy of connecting global capital seeking attractive returns, with the attractive investment opportunity in Kenya and the region. Through Cytonn, Taaleri’s investors have been able to achieve attractive returns, while also contributing towards growth of the Kenyan economy, reducing the housing deficit, and also uplifting standards of living in the economy. Through all of Taaleri’s investments with Cytonn, we have been able to create over 2,000 jobs both directly and indirectly, and delivered inspiration and institutional-grade real estate to the market. We shall continue investing in mid income housing even as we ramp up our efforts in affordable housing”
Speaking at the function, Antti-Jussi Ahveninen, the Head of Real Estate Funds, Africa at Taaleri noted that “Our partnership with Cytonn has continued to grow, with Cytonn our trusted partner for deploying capital to the East African Region. More than just delivering attractive returns to our investors, Cytonn delivers institutional-grade real estate, plays a key role in development of housing in Kenya, and does all this with the highest standards of corporate governance. This KES 2.1 billion investment is the first investment with Cytonn from our second Africa fund, and we are exploring further areas to deploy capital with Cytonn. He further added that “Cytonn has a strong track record in structuring real estate investment products, and this structured finance structures are what appeal to global capital seeking attractive risk-adjusted returns. We also commend Cytonn’s sponsorship of the East African Forum for Structured Products (EAFSP) as a foundation to continue attracting global capital to real estate, all towards funding the affordable housing pillar of the government’s Big 4 Agenda.”
Cytonn Investments was advised by Cytonn Capital Partners as transaction advisor and Oraro and Company Associates as Legal Advisors. Taaleri was advised by KNOW Advocates, led by Jenny Nduati, as legal advisors.
Cytonn Investments Management Plc is an independent investment management firm, with offices in Nairobi – Kenya and D.C. Metro – U.S. They are primarily focused on offering alternative investment solutions to individual high net-worth investors, global and institutional investors and Kenyans in the diaspora interested in the high-growth East-African region.
They currently have over Kshs 82.0 billion of investments and projects under mandate, mainly in real estate.