Acorn Student Accommodation Development REIT (ASA D-REIT) has sold its Qwetu Aberdare Heights II stabilized asset to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion.

ASA D-REIT will repay up to Sh600 million of the Acorn Green Bond raising the total payment on the Sh5.7 billion bond to Sh3 billion ahead of its November 2024 maturity.

The ASA I-REIT acquired the 630-bed property near USIU bringing its total acquired assets in the past three years to four and overall acquired to seven with a total 4,450 beds portfolio.

Acorn says Qwetu Aberdare Heights II embodies its devotion to providing quality affordable student accommodation and raising the total asset value of the ASA I-REIT to Sh10.5 billion.

The ASA D-REIT development vehicle boasts of Sh12 billion in total asset value and it is currently developing 12 projects, including Qwetu and Qejani Karen, and Chiromo.

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“The track record of the ASA REITS since inception has demonstrated the resiliency of the sector and our business model as we continue to make our contribution to the economic growth of Kenya through this housing asset class,” stated Acorn Investment Management Limited Acting Executive Director Mathew Maina.

Acorn says ASA D-REIT and ASA I-REIT portfolio of operating beds and those under development stands at 20,000 at the end of 2023 making it the largest Purpose-Built Student Accommodation (PBSA) provider in Africa.

Similarly, ASA D-REIT declared its first dividend payout of Sh240 million to investors realising a dividend yield of 3.4 per cent, according to the offer memorandum issued its 2021 launch.

“The payment of the first dividend by the ASA D-REIT is a significant boost to the returns of the investors who have placed their confidence in Acorn and this nascent asset class Given the strong pipeline of projects under development, the ASA D-REIT expects to pay dividends to investors annually going forward,” added Maina.