InfraCo Africa’s Landmark REIT Investments In Kenya

Norton Rose Fulbright has advised InfraCo Africa on the deal.

InfraCo Africa, part of the Private Infrastructure Development Group, esteblished two real estate investment trusts (REITs) in Kenya since its REIT regime was introduced in 2013.

InfraCo Africa, which is funded by the UK, Dutch and Swiss governments, seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It acted as the anchor investor for both REITs, established by Acorn Holdings Limited, a Kenyan organization with a track record in delivering purpose-built student housing. The first REIT is a development REIT aimed at developing affordable student housing in Nairobi, while the second is an investment REIT focused on holding investment-grade, stabilized assets.

Unlike traditional equity, REITs offer a tax-efficient means of raising capital. InfraCo Africa’s participation as an anchor investor is expected to help mobilise local capital markets and enable Acorn to achieve scale quickly. 

The London-based Norton Rose Fulbright team was led by partner Mark Lloyd Williams (Picture) and senior associate Andrew Davies, in conjunction with Kenyan colleagues from alliance firm Walker Kontos in Nairobi.   

 

Involved fees earner: Andrew Davies – Norton Rose Fulbright; Mark Lloyd Williams – Norton Rose Fulbright;

Law Firms: Norton Rose Fulbright;

Clients: InfraCo Africa;

Author: Federica Tiefenthaler