Cytonn Asset Managers to mobilize US$300m for funding new housing project

KENYA – Cytonn Asset Managers Limited (CAML), the regulated affiliate of Cytonn Investments Management PLC, is seeking to raise at least KSh30 billion (US$300m) to fund construction of 6000 mid to low income houses through its regulated scheme dubbed Cytonn High Yield Fund (CHYF). 

The of launching ceremony of CHYF was graced by Mr. Charles Hinga, Principal Secretary, State Department for Housing and Urban Development. 

He backed the fund saying that it is the right impetus needed to boost private sector investments to accelerate affordable housing project.

He added that it will allow another avenue for the private sector to bring regulated capital towards the development of affordable housing units.

Speaking at the launch, Cytonn CEO, Edwin H. Dande said, “We are constantly striving to provide creative solutions that will ensure the affordable housing agenda is attained and Cytonn High Yield Fund is one of those solutions. 

“We believe the fund is in line with the government’s agenda of attaining affordable housing by 2020. Driven by such factors we asked ourselves, ‘How can we bridge these challenges and provide affordable mixed-use developments?’ CHYF is our solution.”

Victor Odendo, Principal Officer at CAML, explained that “The Cytonn High Yield Fund is a specialized Collective Investment Scheme, which has a high allocation towards investment in real estate assets, which have consistently demonstrated the ability to deliver higher returns than those from traditionally available assets. 

“The investment objective of CHYF is to obtain a high level of current income while protecting investors’ capital.” Victor further explained that the fund’s objective will be to outperform the income yield available from commercial banks by investing in alternative asset classes such as real estate.

Dr. Edward Odundo, Chairman, East Africa Forum for Alternative Investments said “Housing plays a key socio-economic role and represents one of the main sources of wealth in Kenya

“Against the backdrop of rapid urbanization putting pressure on housing delivery systems, many first-time home buyers will not be able to afford formal housing without proper housing finance solutions.”

Stakeholders have expressed optimism in the specialized Collective Investment Scheme, which has a high allocation towards investment in real estate assets.

For investors, the scheme has shown ability to deliver higher returns than traditionally assets.

The fund’s objective will be to outperform the income yield available from commercial banks by investing in alternative asset classes such as real estate.

Housing plays a key socio-economic role, in any society.

However, against the backdrop of rapid urbanization putting pressure on housing delivery systems, many first-time home buyers are not be able to afford formal housing, as evidenced by mushrooming of slums within urban settlements.

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