- Acorn Holdings, Africa’s largest developer of student housing, signed a USD 180 million.
- The funding will be used to develop 35 new affordable student housing units in Kenya, providing 48,000 beds for students and creating over 50,000 jobs.
- The loan will be repaid over 18 years, providing Acorn with a stable financial solution.
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Largest Affordable Student Housing Deal in Africa
Acorn Holdings, Africa’s largest developer of student housing, signed a USD 180 million (KES 23.6 billion) funding agreement with the U.S. Development Finance Corporation (DFC). This is by far the largest deal for affordable student housing ever seen in Africa.
Increased Student Beds and Employment Opportunities
The funding injected will be used to develop 35 new affordable student housing units in Kenya. These units will provide an additional 48,000 beds for students and create over 50,000 jobs, both directly and indirectly.
Funding Breakdown and Use
The funding distribution is as illustrated below:
- USD 90 million will be allocated to the Acorn Student Accommodation Development-Real Estate Investment Trust (ASA DREIT) for constructing new student housing.
- USD 90 million will go to the Acorn Student Accommodation Income-Real Estate Investment Trust (ASA I-REIT) to buy existing student housing from ASA DREIT.
- The remaining funds will be used to secure additional financing from Kenyan sources. The total project value is expected to reach USD 700 million (KES 92 billion) over 18 years.
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Event Details
The signing ceremony, held at the U.S.-Kenya Business Forum in Washington D.C. and attended by President William Ruto, marked a historic deal as the largest affordable student housing project in Africa. This reinforces Acorn’s position as the leading provider of Purpose-Built Student Accommodation (PBSA) on the continent.
Long-Term Financing and Sustainability
The loan will be repaid over a period of 18 years, providing Acorn with a stable financial solution. Additionally, all new student housing units will be built with sustainability in mind, aiming for a 40% reduction in energy and water use.
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CEO’s Statement
Edward Kirathe, CEO of Acorn Holdings, expressed pride in the deal, highlighting its contribution to Kenya’s affordable housing agenda and the confidence shown by the U.S. DFC in Acorn’s capabilities. He emphasised Acorn’s commitment to sustainable development, with all projects under this facility aiming for the International Finance Corporation’s Excellence in Design for Greater Efficiencies (IFC EDGE) ADVANCED Certificate.
Project Partners
There are several organisations involved in this project and they include:
- MIDA Advisors (lead arranger and advisor)
- Stanbic Bank (joint lead arranger and lender)
- Prosper Africa and USAID (technical assistance)
- Morrison Foerster, HillStern & Morley, IKM Advocates, and TripleOKLaw Advocates. (legal advisors)
About Acorn Holdings
Established in 2001, Acorn Holdings is a leading real estate developer in East Africa. They specialise in purpose-built student accommodation and aim to improve living conditions and create communities for students.
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