Cytonn Investments, a real estate developer and investment management firm in the East African region, has secured Sh2.1 billion in extra funding from their institutional partners, Taaleri of Finland.
The fund will be used in development projects, such as construction of The Ridge, a Sh12 billion mixed- use development by Cytonn located in Ridge Ways, Nairobi county. The money will take the form of mezzanine financing ( a mixture of debt and equity funds), with a five-year tenure.
“We are thankful to Taaleri for the continued support they have shown to the Cytonn brand and the Cytonn team for continuing to exceed Taaleri’s investment expectations. Our strategy is connecting global capital seeking attractive returns, with the attractive investment opportunity in Kenya and the region,” said Shiv Arora, Head of Real Estate Private Equity at Cytonn Investments.
This will be the fourth time the Finnish firm will be investing with Cytonn Investments, having already committed over Sh3 billion towards projects and investments with the real estate developer. The Finnish fund has already successfully exited from two other investments, namely Amara Ridge in Karen and The Alma in Ruaka. “Through this partnership, we have delivered inspiration and institutional-grade real estate to the market. We will continue investing in mid income housing even as we ramp up our efforts in affordable housing,” said Antti-Jussi Ahveninen, Taaleri Head of Real Estate Funds.
He said even if this is the first investment with Cytonn from their second Africa fund, they are exploring further areas to deploy capital with Cytonn. “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,” he added.
Taaleri is a financial group whose parent firm, Taaleri Oyj, is listed on the Finnish stock exchange maintained by Nasdaq Helsinki Oy. The firm runs three business segments: asset management, finance and energy. It manages Sh660 billion investments.