Acorn Holdings Africa, the Nairobi-based property development firm owned by Kenyan real estate billionaire Edward Kirathe, has purchased a critical plot of land in Eldoret town. This represents the company’s foray into student housing outside of Nairobi, as it continues to develop its real estate and student accommodation projects throughout Kenya.
The move is consistent with Acorn’s overall objective to expand its regional footprint. The company hopes to strengthen its position as a top developer of student dormitories in Kenya by raising $21.7 million. This capital injection will help the company’s ambitious expansion plans, which include the construction of new hostels in major tier-two urban areas.
In August, Acorn detailed intentions to raise this cash through open market offers and rights offerings, which began in late April. The increase comprises Ksh1.9 billion ($14.7 million) for Acorn Student Accommodation I-Reit and Ksh810 million ($6.27 million) for D-Reit. This grant will benefit both current and future projects.
Acorn’s most recent semi-annual report for its Acorn Student Accommodation Development-Reit revealed a planned growth into tier-two urban centers such as Eldoret and Kakamega.
This strategic focus builds on the company’s significant developments in Nairobi and Kiambu County. Notable projects in Nairobi include the Qwetu hostel for Jomo Kenyatta University of Agriculture and Technology students and the Qejani hostel in Juja, which has 1,116 beds.
Acorn intends to increase its presence in Nairobi by opening new Qwetu and Qejani hostels in important locations for students from the University of Nairobi and the Technical University of Kenya. Its ambitious expansion plans demonstrate its commitment to meeting the growing need for purpose-built student accommodation (PBSA) throughout the Nairobi Metropolitan Area.
Acorn Holdings Africa, led by Edward Kirathe, has established itself as a leading participant in Kenya’s real estate business. The company has a portfolio of over 65 successful projects, with total assets worth Ksh18.3 billion ($142 million).
Acorn now offers 17,000 PBSA beds over 17 locations and 6,000 operational beds across nine properties. As Acorn Holdings Africa continues to broaden its reach and improve its products, the new site acquisition in Eldoret represents a big step forward in its mission to change student housing in Kenya.