Kenyan tycoon Edward Kirathe’s Acorn to bolster portfolio with $21.7-million raise

Omokolade Ajayi -

Key Points

  • Acorn Holdings Africa eyes $21.7 million to expand its student housing and real estate projects in Kenya.
  • The new capital will expand asset portfolio and operational capacity, supporting student and investment real estate trusts by February 2025.
  • under Edward Kirathe, Acorn maintains a strong presence with more than $142 million in assets under management and 23,000 total beds across various properties.

Acorn Holdings Africa, a leading property developer headquartered in Nairobi and founded by Kenyan real estate magnate Edward Kirathe, is set to bolster its asset portfolio and operational capacity with a fresh injection of Ksh2.8 billion ($21.7 million) in new capital.

This capital raise, a mix of open market offers and rights issues initiated in late April, targets Ksh1.9 billion ($14.7 million) for the Acorn Student Accommodation I-Reit and Ksh810 million ($6.27 million) for the D-Reit.

The capital injection will be allocated towards its development and investment real estate investment trusts (Reits) by February 2025. The funds will primarily support the construction and acquisition of new properties, positioning Acorn Holdings as the dominant institutional investor in rental housing across East Africa.

Acorn boosts student housing in Kenya

Acorn’s latest strategic move builds on its expansion initiatives, focusing on Nairobi’s central areas and Juja in Kiambu County. Notable projects include a new Qwetu hostel for Jomo Kenyatta University of Agriculture and Technology students and a 1,116-bed Qejani hostel in Juja.

In Nairobi, the firm plans to establish Qwetu and Qejani hostels on a strategically located plot to cater to students from the University of Nairobi and the Technical University of Kenya.

Acorn’s strong presence in Nairobi’s real estate

Under Edward Kirathe, a seasoned real estate magnate, Acorn Holdings Africa has emerged as a pivotal player in Kenya’s real estate landscape.

The company boasts a portfolio of over 65 successful projects, with assets valued at Ksh18.3 billion ($142 million). Its primary focus remains the Nairobi Metropolitan Area, offering 17,000 Purpose-Built Student Accommodation (PBSA) beds across 17 properties and 6,000 operational beds across nine properties.

Despite a drop in net profit to Ksh71.6 million ($540,000) from Ksh384.2 million ($2.9 million) in 2022, due largely to lower fair value gains on investment properties, Acorn distributed dividends amounting to Ksh482.8 million ($3.64 million) earlier this year to unit holders of its two Reits.