Acorn Holdings has received authorisation from the Capital Markets Authority (CMA) for the establishment of a Build-To-Rent Development Real Estate Investment Trust (D-REIT) aimed at expanding Kenya’s affordable housing rental market for young urbanites.

The Acorn Build-To-Rent D-REIT (ABTR D-REIT) will offer investors an opportunity to participate in large-scale, professionally managed rental property developments, which are targeted at young urbanites who are looking at world-class, yet affordable housing in urban areas.

To support the establishment of this venture, $17m (KES 2.2 billion) has been committed by three entities - including global multilateral organisation, Private Infrastructure Development Group (PIDG), which has committed $10m (KES 1.3 billion) in equity investment.

The anchor investment, made through PIDG’s project development solution, InfraCo, will come in alongside a further $2m (KES 258 million) from Shelter Afrique Development Bank, and $5m (KES 645 million) of equity from Acorn. 

Edward Kirathe, CEO of Acorn Holdings, said: “The launch of the Acorn Build-To-Rent D-REIT marks another important milestone in our journey to provide urban Africa with rental housing solutions. The ABTR D-REIT will initially focus on providing purpose built rental housing for young urbanites between 20-30 years old who work in the formal and informal business hubs of Nairobi." 

"Uniquely, this time around, we will be launching the REIT with upfront committed capital from institutional investors including Acorn, PIDG, and Shelter Afrique Development Bank. The new REIT continues to deepen our participation and innovation in the capital markets and wider Kenyan economy. We are thankful to our investment partners and The Capital Markets Authority for their support in bringing this new REIT to Market,” he said.

Claire Jarratt, PIDG Head of Investment Management for InfraCo, said: “We are delighted to be building on our strong relationship with the team at Acorn to launch a new product in the Kenyan housing market – a REIT to deliver purpose-built, affordable housing for young, urbanites. The initiative will not only enable these individuals to live in closer proximity to their work and social lives, bridging the current gap in provision of suitable homes, but will also develop Kenya’s domestic capital markets, unlocking further capital to scale access to such housing across the city.” 

“Acorn’s existing portfolio of 20 purpose-built student accommodation properties, all IFC EDGE certified, reflect PIDG’s commitment to developing sustainable and resilient cities in the face of climate impacts,” she said.

Built to the high standards Acorn has adopted across its student accommodation portfolio, the homes will meet the needs of different market segments, those with higher incomes who find themselves in a mortgage gap, and those for whom more affordable, shared accommodation is needed. Conveniently located close to Nairobi’s key working hubs, the new housing will be green, safe, secure, and affordable.

In designing these purpose-built accommodation, attention has been given to the unique needs of young female professionals, who often prioritise not only convenience and lifestyle but also safety and peace of mind in urban living. 

Features such as secure access systems, and thoughtfully designed private spaces have been integrated to create an environment where women feel protected, empowered, and at home. At the same time, the accommodation also embraces the diverse requirements of male urbanites and individuals with disabilities, ensuring that inclusivity, comfort, and dignity remain at the core of the living spaces.

The buildings will be IFC EDGE certified, a key measure for ensuring that buildings are climate-resilient and resource-efficient.

Thierno-Habib Hann, Shelter Afrique Development Bank Managing Director, said: “It gives us great pleasure as Shelter Afrique Development Bank to announce a $2m financing agreement with Acorn Holdings, aimed at expanding sustainable, inclusive, dignified and quality accommodation for young urban professionals for Africa’s future. This initiative is not only timely - it is vital. Nairobi is one of Africa’s fastest-growing cities, with a youthful population that is dynamic, entrepreneurial, and increasingly urban. Yet, for too many young professionals - graduates, entry-level employees, entrepreneurs - the search for affordable, well-located, and secure housing remains a daily struggle." 

"This continued partnership with Acorn reflects our firm commitment to bridging that gap. Acorn has demonstrated a clear vision and a proven ability to deliver targeted housing solutions that meet the needs of Nairobi’s urban youth. Their track record through Qwetu and Qejani brands has redefined purpose-built student and youth accommodation in East Africa. At Shelter Afrique, we understand that housing is not just about buildings it’s about opportunity. When a young professional has access to safe, affordable accommodation near their workplace, they are better positioned to succeed, to innovate, and to contribute meaningfully to society”

The company’s growth has been supported by PIDG since 2019, including a green bond and two REITs, which have raised $31.36m from Kenya’s capital markets to date. 

The new transaction is expected to unlock significant further investment from private and institutional investors to expand Acorn’s portfolio of affordable housing for this underserved market segment.

Stanbic Bank Kenya and SBG Securities served as the Lead Transaction Advisor, NCBA Bank Kenya PLC as the Trustee, TripleOKLaw, Gowling WLG, and Norton Rose Fulbright as the Legal Advisors, Viva Africa Consulting as the Tax Advisor, and PwC as the Reporting Accountant.