Cytonn Investments, an alternative investment management firm with a focus on asset management, real estate, and private equity, has signed a Sh650 million loan facility with State Bank of Mauritius (SBM Bank Kenya) as it seeks to bring in long-term debt to complement its private markets funding, such as Cytonn High Yield Solutions (Cytonn HYS), and institutional funding such as from Taaleri of Finland.
Cytonn Real Estate, the development affiliate of Cytonn Investments, will direct the loan facility towards completion of The Alma a Sh4 billion residential mixed-use development in Ruaka Town in Kiambu County. It comprises of 477 residential units and a commercial space that includes a kindergarten.
Speaking at the event Edwin H. Dande, chief executive at Cytonn Investments, said, “This signals the beginning of a long-term partnership with SBM Bank. It is the first bank loan for Cytonn Investments, which has been raising capital from institutional investors such as Taaleri of Finland, who have invested Sh5 billion with us, and high net worth individuals who have invested over sh11 billion through Cytonn HYS. This partnership with SBM is not just about Alma, it’s about coming together to contribute towards alleviating the housing needs, and in turn creating jobs, growing the economy and uplifting the standards of living.”
Also speaking at the function, Jotham Mutoka, the Deputy Chief Executive Officer at SBM Bank of Kenya said that Cytonn is delivering institutional grade real estate while also delivering attractive returns to their investors. It is also, he said, playing a key role in development of housing in Kenya, and does all this with the highest standards of corporate governance.
“This Sh650m is testament to SBM believing in the Cytonn strategy. Projects such as The Alma are a place for skilled Kenyan artisans to put their skills to test, a place for building materials to be used, and an overall collaboration with the demand and supply side. SBM’s role is to support this ecosystem to help the economy achieve its objectives,” added the SBM deputy CEO.
Antti-Jussi Ahveninen, from Taaleri of Finland, Cytonn’s largest institutional investor, noted that “Institutional investors such as Taaleri and SBM not only provide capital, but also bring global best standards to the institutions we work with, and perform high levels of due diligence before investing. Alma is a comprehensive development project and the best high-density mixed-use development in Ruaka, which has seen investors get attractive returns, and for homebuyers, a high-quality and institutional grade project. Bank funding strongly complements institutional capital, such as funds from Taaleri, and guarantee completion and delivery of real estate projects.”