Cytonn Investments has increased funding for their real estate projects by 2.1 billion shillings from their institutional partners, Taaleri, totaling to 5 Billion shillings.
The funding forms part of Taaleri’s investment in Africa’s real estate sector through their second Africa real estate fund and will be channeled towards the development of Cytonn’s real estate projects.
Taaleri manages a total of 658.5 billion shillings and provides funding in the capital-intensive real estate sector in Africa.
The funding will take the form of mezzanine financing, and will have a tenure of five-years.
This will be the fourth time the Finnish firm will be investing with Cytonn Investments, having already committed over 3 billion shillings towards projects and investments with Cytonn, and having already successfully exited from two other investments, the Amara Ridge in Karen and the Alma in Ruaka.
The funds will be directed towards development projects, such as the construction of The Ridge, a KES 12.0 billion mixed-use development by Cytonn located in Ridgeways, Nairobi County.
Speaking at the signing of the additional funding, Shiv Arora, Head of Real Estate Private Equity at Cytonn Investments, noted that they were thankful to Taaleri for the continued support they have been showing them.
“Our partnership with Taaleri is a testament to our strategy of connecting global capital seeking attractive returns, with the attractive investment opportunity in Kenya and the region. Through Cytonn, Taaleri’s investors have been able to achieve attractive returns, while also contributing towards the growth of the Kenyan economy, reducing the housing deficit, and also uplifting standards of living in the economy,” said Shiv Arora.
Arora further noted that through all of Taaleri’s investments with Cytonn, the company had been able to create over 2,000 jobs both directly and indirectly, and delivered inspiration and institutional-grade real estate to the market noting that Cytonn will continue investing in mid-income housing even as they ramp up their efforts in affordable housing.
Head of Real Estate Funds, Africa at Taaleri Antti-Jussi Ahveninen, on the other hand, said that their partnership with Cytonn continues to grow, noting that Cytonn has turned out to be Taaleri’s trusted partner for deploying capital to the East African Region.
“More than just delivering attractive returns to our investors, Cytonn delivers institutional-grade real estate, plays a key role in the development of housing in Kenya, and does all this with the highest standards of corporate governance,” said Antti-Jussi Ahveninen.
Antti-Jussi Ahveninen further stated that the 2.1 billion shillings’ investment was the first investment with Cytonn from their second Africa fund, and that they are exploring further areas to deploy capital with Cytonn.
Taaleri is a financial group whose parent company Taaleri Oyj’s share is listed on the stock exchange maintained by Nasdaq Helsinki Oy. The Taaleri Group consists of three business segments: Asset Management, Finance, and Energy.