Realtor Cytonn Investments has launched Kenya’s first regulated fund seeking to raise Sh30 billion for constructing 6,000 housing units under the Affordable Housing Programme.
The real estate Collective Investment Scheme (CIS) Cytonn High Yield Fund that gives a 15 percent rate of return annually requires investors to chip in a minimum of Sh1 million each as per Capital Markets Authority regulations.
Housing PS Charles Hinga said commissioning of the Cytonn High Yield Fund proved Affordable Housing Programme was now attracting local capital with 22 local and global institutional investors planning to inject Sh2.2 trillion in affordable housing projects.
“This is proof that building low-cost houses is a bankable product. 275,000 Kenyans have expressed interest with 17,000 voluntarily saving for their dream houses that will attract a fixed seven percent interest rate for loans repayable for the next 25 years,” he said during the product launch ceremony in Nairobi.
PS Hinga said Kenyans building first homes can also benefit from a monthly Sh9,000 home relief totalling Sh108,000 annually under the Housing Ownership Savings Plan, with developers being incentivised with off-site infrastructure, fast-tracked approvals, regulatory fees waiver and free land.
Realtor Cytonn Investments has launched Kenya’s first regulated fund seeking to raise Sh30 billion for constructing 6,000 housing units under the Affordable Housing Programme.
The real estate Collective Investment Scheme (CIS) Cytonn High Yield Fund that gives a 15 percent rate of return annually requires investors to chip in a minimum of Sh1 million each as per Capital Markets Authority regulations.
Housing PS Charles Hinga said commissioning of the Cytonn High Yield Fund proved Affordable Housing Programme was now attracting local capital with 22 local and global institutional investors planning to inject Sh2.2 trillion in affordable housing projects.
“This is proof that building low-cost houses is a bankable product. 275,000 Kenyans have expressed interest with 17,000 voluntarily saving for their dream houses that will attract a fixed seven percent interest rate for loans repayable for the next 25 years,” he said during the product launch ceremony in Nairobi.
PS Hinga said Kenyans building first homes can also benefit from a monthly Sh9,000 home relief totalling Sh108,000 annually under the Housing Ownership Savings Plan, with developers being incentivised with off-site infrastructure, fast-tracked approvals, regulatory fees waiver and free land.
Cytonn Asset Managers Ltd principal officer Victor Odendo said it had raised about Sh13 billion locally in the past year via their Cytonn high yield (10.4 billion), unit trusts (Sh700 million) and a further Sh2 billion via the Cytonn Money Market Fund.
Cytonn board member James Maina called for a review of regulations to remove impediments on such investment vehicles saying Affordable Housing Programme could attract more private sector investors and developers, helping the government to achieve the Big Four-goal.
Cytonn Chief Executive Edwin Dande said construction of a seven-kilometre road linking its 1,000 acre Newtown plot to Mombasa Road will see them fast-track development of the 6,000 units.
“Before only 25 percent of CIS funds was invested in a project but CMA has exempted us allowing the deployment of up to 80 percent on any project,” he said.
Source: businessdailyafrica
