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Cytonn Investments Secures a Loan Facility of Ksh 650 Million from SBM

BY Soko Directory Team · March 18, 2019 07:03 am

Cytonn Investments, a leading alternative investment management firm in the East African Region, with a focus on real estate, financial services, education, and hospitality, has secured a 650 million shilling loan facility with State Bank of Mauritius as it seeks to diversify its source of funding with long term debt.

The loan secured by Cytonn Real Estate is to be directed towards completion of The Alma Project, which is already 90 percent sold.

The Alma is a kes 3.2 billion development in the upmarket location that is Ruaka Town in Kiambu County. It comprises of 477 residential units and a commercial space that includes a kindergarten and is currently 90% sold. The first phase of The Alma is scheduled to be handed over to the clients by the end of the first half of this year.

Speaking at the event Edwin H. Dande, Chief Executive Officer at Cytonn Investments, noted, “This signals the beginning of a long term partnership with SBM. Cytonn seeks to cut the share of mezzanine finance to 30% while we also seek to increase bank financing to 50%.”

This is the first loan for Cytonn Investments that has been raising capital from institutional investors, high net worth individuals and joint ventures. Edwin further said, “This partnership with SBM is evidence that there are brands that have looked at our strategy and are comfortable with it”

Also speaking at the function, Jotham Mutoka, the Deputy Chief Executive Officer at SBM Bank of Kenya, noted, “Cytonn is delivering institutional grade real estate while also delivering attractive returns to their investors. It is also playing a key role in the development of housing in Kenya and does all this with the highest standards of corporate governance. This Kes 650 million is the first investment and we shall be exploring further areas to collaborate with Cytonn. He further added, “Cytonn has a strong track record in structuring real estate investment products, and this structured financing forms part of the appeal with attractive risk-adjusted returns.”

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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