Cytonn acquires 25pc stake in Superior Homes

Investment firm Cytonn has made a Sh1 billion play to acquire a 25 percent stake in property development firm Superior Homes.

The move will see Cytonn strengthen its real estate arm by leveraging on Superior Homes’ existing and future projects that includes the construction of a hotel.

The investment firm has traditionally targeted high end buyers with its ongoing projects.

Speaking during the deal signing on Tuesday, Cytonn chief executive officer Edwin Dande said the partnership with the real estate developer would enable it expand its real estate options by targeting a wider array of buyers.

“They (Superior Homes) are good in master planned communities in satellite towns like Athi River that’s something we didn’t have, so we though it’s good to come together to give us an opportunity to deploys capital in an area of real estate that we don’t have,” Mr Dande said.

Real estate developers cite funding as one of the biggest challenges to churning out projects.

A survey released by Hass Consult indicated that the recent move to cap interest rates had done little to spur uptake of mortgages or loans for developers.

Superior Homes Managing Director Ian Henderson said the decision to sell a stake in the firm was informed by need to acquire capital to fund developments.

“Our strengths are really on the design and execution of construction and Cytonn brings skills in the financial side and access to finance and financial management and marketing that will be a tremendous asset going forward, Mr Henderson said.

Reporting by Sophie Kinoti & Patrick Igunza