Acorn Student Accommodation Development REIT (ASA D-REIT) has successfully sold its stabilized asset, Qwetu Aberdare Heights II, to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion. In a strategic move, ASA D-REIT is repaying up to Sh600 million of the Acorn Green Bond, bringing the total payment on the Sh5.7 billion bond to Sh3 billion before its November 2024 maturity.
The ASA I-REIT’s acquisition of the 630-bed property near USIU adds to its growing portfolio, making it a total of four assets in the past three years and seven overall, with a combined portfolio of 4,450 beds. This acquisition boosts the total asset value of ASA I-REIT to Sh10.5 billion, emphasizing Acorn’s commitment to providing quality, affordable student accommodation.
ASA D-REIT, with a total asset value of Sh12 billion, is actively developing 12 projects, including Qwetu, Qejani Karen, and Chiromo. According to Acorn Investment Management Limited Acting Executive Director Mathew Maina, the ASA REITs have demonstrated resilience since inception, contributing to Kenya’s economic growth through the housing asset class.
The combined portfolio of operating beds and those under development for ASA D-REIT and ASA I-REIT stands at 20,000 at the end of 2023, establishing them as the largest Purpose-Built Student Accommodation provider in Africa.
ASA D-REIT declared its first dividend payout of Sh240 million, realizing a dividend yield of 3.4%, a significant boost for investors who have placed their confidence in Acorn and this emerging asset class. With a robust pipeline of projects under development, ASA D-REIT expects to pay dividends to investors annually in the future.
