Cytonn Investments has acquired a 25% stake in Superior Homes, a real estate developer in Kenya, with an option for further purchase over the near term.

The series of transactions as structured values Superior Homes at about KES4bn, hence valuing the stake of Cytonn, upon successful completion of the series of transactions, at about KES1bn.

Elizabeth N. Nkukuu, Cytonn’s CIO, said: “Superior Homes is a leading real estate developer in Kenya, most notably known for being a pioneer in the execution of master-planned gated communities in the Nairobi Metropolis, namely the Greenpark Estate in Athi River.”

“More than a gated community, Superior Homes has established a community and neighbourhood presence in their developments, which have provided secure, institutional grade and lifestyle living. This enables us to provide to our investors yet another segment of exposure in real estate,” she added.

Superior Homes has established itself as a strong brand in real estate, with a track record of delivering the most comprehensive master-planned gated community in Kenya, with a strong deal pipeline in both Athi River and the Nairobi Metropolis. 

Ian Henderson, Managing Director of Superior Homes, said: “In Cytonn we have found an exceptional real estate investments structuring partner to work together as we execute our real estate development strategy for our next period of growth. After a strong 10-year track record, it was important to tie up with a partner with shared values, aspirations and complementary capabilities.” 

“Through this partnership and the investment, we shall work to grow our deal pipeline, drive the company towards listing on the Nairobi Securities Exchange, subject to regulatory approval, during the course of 2017, and continue delivering aspirational neighbourhoods to all our home owners and make our contribution to growing the Kenyan economy,” he added. 

Edwin H. Dande, Cytonn’s Managing Partner & CEO, added that the deal is complementary and compelling. 

“In Superior Homes, Cytonn gets a partner that has a strong track record in master-planned developments and also construction capabilities, and in Cytonn, Superior Homes gets a partner that has a strong track record in structuring real estate investment products, and they also complement our development affiliates. Above all is our shared values, operating principles and vision.”

“Beyond the acquisition, the bigger deal here is the partnership. Together we are going to move faster and more significantly in providing housing for families, create jobs, grow the economy and uplift the standards of living,” added Edwin.

The transaction advisors to Superior Homes were I&M Burbidge Capital, and the legal advisors were Bowmans.

Cytonn Investments is an investments and real estate company with offices in Nairobi, Kenya and DC Metro area, the US. 

The company is primarily focused on offering alternative investment solutions to global institutional investors, individual high net-worth investors, local institutional investors and diaspora investors interested in the East-African region.