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.
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.