Positive Impact Property Fund – Nairobi
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50) / Kenya (12)
The Truestone Impact Property Fund-Nairobi makes retail real estate investments anchored by educational charities aimed at improving the lives of women and poor families through small business creation, financial literacy programmes, and in-school teaching in Kenya.
The fund is developing two prime real estate sites owned by Kenyan charities in Nairobi. New grade A office space on the sites will provide the charities with new offices plus further office space to rent or sell, making the charities more financially self-sufficient and allowing them to expand their educational missions in the country. It is anticipated that approximately 1,000 new training roles will be funded.
Investors' capital will be split 80:20 debt to equity and will provide a targeted income of 15% per annum (pre-tax)after fund charges on the debt element during the term of the investment. The target IRR for the Fund overall is 20% (pre-tax) annualised.
The Fund is available to Professional and Sophisticated Investors and High Net Worth individuals only.
Financially the fund aims to add value in two ways:
1. By developing old poor quality buildings into Grade A office space
2. From the ongoing increase in property prices in Nairobi
The term of the Fund is 30 months which includes a generous allowance for any possible delays.
IRR: annualised target is 20% (pre-tax)after fund charges
Income: target is 15% per annum (pre-tax) after fund charges on the debt element of the investment, paid out during the term
Investments are split 80:20 debt to equity the debt portion generating the annual income by using interest earned on undeployed cash and presales of the developments. The income element is hedged (Kenyan Shilling to GB Pound) but not initially the principal.
of track record
the year funded
Truestone Impact Investment Management
Headquarters location: United Kingdom
Other funds managed by this asset manager: Truestone Impact Fund LP
Key performance indicators
Asset manager: Truestone Impact Investment Management
Product track record: Fund has 8 years of track record
Target IRR: 20%
Committed Capital: 6,000,000 GBP (Pound Sterling)
Target return category: Risk-adjusted market-rate of return
Fund domicile: United Kingdom
Product status: Open - no committed capital
Inception year: 2015
Vintage year: 2016
Target region: Africa, Eastern Africa, Emerging countries, Kenya
Target close date: 01/01/2016
Product term: 30 months
Assets under management: 9,500,000 GBP (Pound Sterling)
Investment size: Min: 100,000; Max: 8,500,000; Avg: 0
Currency of investments: GBP (Pound Sterling)
Currency for fund / product figures: GBP (Pound Sterling)
Fund investments to date: 1
Fund investments to date exited or repaid: 0
Management fee: 3.1%
Carried interest: 20%
Hurdle rate: 10%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors
Phone number: +44 (0)20 7135 2480
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Senior Investment Analyst
The Impact will be delivered through the financing of two charities (CMS - Africa and the Kenyan Student Christian Fellowship (KSCF)). The funding they receive from the completed developments will allow the recruitment of approximately 1,000 new educational roles, working both within and outside the formal education system in Kenya.
KSCF - presently provide personal development awareness training under a MoU with the Kenyan government. They are active in roughly half the secondary schools (4,000) in the country and are targeted to expand to cover all 8,000. KSCF also provides guidance on equality, the importance of the environment, HIV/AIDS education and Christian ethics.
CMS - Africa provides financial literacy training for poor families and vulnerable women as well as business skills training for young adults and women to help build small businesses and employment in a country with 40% unemployment. It is also involved in cross cultural projects within the country. The charity is targeting to reach an extra 40,000 families with their work, over the next five years with much of the funding coming from the income from their new office space.
IRIS Metrics being Measured Include:
Educational roles Number of teachers employed- OI5896
Number of students receiving vocational/technical training- PI8836
Small businesses created Number of small businesses created PI4583