Acorn Student Accommodation Development REIT (ASA D-REIT) has successfully concluded the sale of its prime property, Qwetu Aberdare Heights II, to the Acorn Student Accommodation Income REIT (ASA I-REIT), marking a significant milestone in the Kenyan real estate sector.
The deal, valued at a staggering SH1.48 billion, not only adds another jewel to ASA I-REIT’s growing portfolio but also facilitates the repayment of nearly KES 600 million from the Acorn Green Bond, bringing the total bond program repayment to an impressive KES 3 billion, well ahead of the scheduled maturity in November 2024.
The Qwetu Aberdare Heights II property, boasting 630 beds and strategically located near USIU and adjacent to Qwetu Aberdare Heights I, elevates ASA I-REIT’s asset count to seven, encompassing a total bed portfolio of 4,450 beds. This acquisition underscores Acorn’s unwavering commitment to providing top-tier, affordable student accommodation.
With this transaction, the total value of ASA I-REIT’s assets skyrockets to an impressive KES 10.5 billion, firmly establishing Acorn as a prominent player in the Purpose-Built Student Accommodation (PBSA) sector on the continent.
Meanwhile, ASA D-REIT, the developmental arm with a robust asset value of KES 12 billion, boasts 12 ongoing projects, including the Qwetu and Qejani Karen developments. Notably, the Chiromo project, the largest PBSA development in Africa with 2,700 beds, is set to conclude the Green Bond projects.
The combined ASA D-REIT and ASA I-REIT portfolio, comprising both operating beds and those under development, now stands at a monumental 20,000 beds, solidifying Acorn’s status as the largest PBSA provider in Africa.
In an additional feat, the ASA D-REIT has declared its maiden dividend payout, a commendable SH240 million, achieving a dividend yield of 3.4 percent. Mr. Mathew Maina, Acting Executive Director at Acorn Investment Management Limited, expressed enthusiasm over the achievement, stating, “The Qwetu Aberdare Heights II transaction is yet another significant milestone for Acorn that reinforces our commitment to providing quality student housing.”
Regarding the dividend payout, Maina emphasized, “The payment of the first dividend by the ASA D-REIT is a significant boost to the returns of the investors who have placed their confidence in Acorn and this nascent asset class.”
He further added, “Given the strong pipeline of projects under development, the ASA D-REIT expects to pay dividends to investors annually going forward,” highlighting the optimistic outlook for investors in the burgeoning PBSA sector.
