Mi Vida Homes, a residential real estate developer, has received a green light from the Capital Markets Authority (CMA) to manage Real Estate Investment Trusts (REITs), marking a significant milestone in Kenya’s burgeoning real estate market. The CMA license permits Mi Vida Homes to oversee assets within REITs, aligning with the company’s long-term strategy to mobilize capital markets for real estate financing.
The approval is a strategic move for Mi Vida Homes, a joint venture between Actis and Shapoorji Pallonji Real Estate, established in July 2019. The company has developed over 3,000 middle-income housing units and aims to leverage its expertise to facilitate broader market participation through REITs. The CMA’s endorsement positions Mi Vida Homes among a growing list of REIT managers, supporting Kenya’s national agenda for affordable housing and market growth.
Wickliffe Shamiah, CEO of the Capital Markets Authority, expressed that Mi Vida Homes’ entry into the REIT management sector reflects the broader efforts to enhance Kenya’s real estate infrastructure and support the national affordable housing agenda. This move aligns with the CMA’s strategy of diversifying financial markets by licensing entities across various sectors, including coffee and fund management.
“The newly licensed REIT Manager joins other licensees to facilitate the development of real estate infrastructure and thus support the national government agenda for affordable housing’, Wickliffe Shamiah said in a statement announcing the license.
As a newly licensed REIT manager, Mi Vida Homes will oversee real estate management services within Real Estate Investment Trusts (REITs), contributing to the sector’s growth and stability.
Chief Executive Officer Samuel Kariuki expressed enthusiasm about the company’s new role, highlighting the potential to deepen the REITs market in Kenya. He emphasized that this milestone aligns with Mi Vida’s commitment to both supply and demand-side financing in real estate.
“There has been a lot of momentum towards deepening the REITS market in Kenya in the recent past,” Mi Vida Homes Chief Executive Officer, Samuel Kariuki said, “We are excited at getting to this milestone as part of our long-term ambition to catalyse mobilization of capital markets towards both supply and demand side financing for real estate”
The REIT structure offers various avenues for investment, including Development REITs (D-REITs) for project development, Income REITs (I-REITs) for income-generating real estate, and Islamic REITs, which comply with Shariah law.
The CMA’s endorsement is not just a vote of confidence in Mi Vida Homes but also a reflection of the broader potential for REITs to contribute to Kenya’s economic development. As more players enter the market, the landscape for real estate investment in Kenya is set to become more dynamic, offering diverse opportunities for investors and stakeholders alike.
Mi Vida Homes’ entry into REIT management comes amid a growing interest in Kenya’s real estate sector, driven by urbanization and demand for affordable housing. The company’s focus on middle-income housing aligns with national efforts to address housing shortages. By managing REITs, Mi Vida Homes can offer investors a structured way to invest in real estate, potentially increasing liquidity and investment in the sector.
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