Cytonn Investments Management Plc says it is “It is time for consolidation and looking for more business” after posting robust profitability of Ksh 537.0 million for the 9 months’ period ending 30th September 2017, from Kshs 886 million for the period ending September 2016.
“The place where we see the best opportunity is the alternative investment,” said Edwin Dande, Managing Partner and CEO Cytonn Investments. “Everybody was doing equity, fixed income, bank deposits. Very few had an allocation to private equity,” he added.
The firm stands to push up its profits with the projected long-term growth prospects of Kenya and the Sub Saharan African Region where it seeks to invest in diversified products such as education and hospitality, while also growing in the Region and offering their clients exposure to a number of regional markets.
“We are looking at very attractive private equity across all sectors – hospitality, real estate, financial services, serviced apartments through Cytonn Residences and investment in serviced offices through Cytonn Business Center,” said Dande.
“Our new initiatives are focused on diversification and tapping into opportunities in other markets,” he added.
It plans to list at the Nairobi Securities Exchange by end of 2018 by way of introduction ‘to do price discovery and understand the market’ according to the CEO.
“Our target is have completed the listing by an introduction by end of Q1 2018 before focusing on how to raise capital where we shall be looking at the NSE and other exchanges abroad -Johannesburg and London.”
Read: What it means to list a company on a securities exchange
The firm has a real estate portfolio valued at at Kshs. 14.6 bn, representing a growth of 45 percent and a quoted investments portfolio valued at Kshs 1.3 bn, representing a growth of 278 percent.
According to Dande, Nairobi is a business hub which has helped them to understand the market better through their strategy. “It is the time we spoke it to other markets” through their regional expansion strategy which is focusing on Kampala (Uganda), Kigali (Rwanda), Dar-es-Salaam (Tanzania) and Accra (Ghana) through acquisition and greenfield.
“Cytonn has grown this far so it is time for consolidation and looking for more business complementary to what we do,” said Elizabeth N. Nkukuu, CFA, Senior Partner & Chief Investment Officer at Cytonn.” We are confident in continuing to deliver superior returns to our investors. All of our investments continue to address the housing shortage, create employment opportunities, with over 1,500 jobs having been created to date, and play a part in the growth of our economy,” added Elizabeth.
Cytonn’s investment-ready real estate projects are : Amara Ridge, Situ Village, The Alma, Newtown, RiverRun Estates, Cytonn Towers, Applewood, Westlands, Taraji Heights and The Ridge.