Managers of residential housing developer Mi Vida Homes have entered into buyout agreement for the firm with parent company Actis for undisclosed amount.
The share purchase agreement which is still subject to regulatory approval will see the realtor expand its residential housing portfolio riding on its strong balance sheet, diversified capital base, and a healthy pipeline of projects according to chief executive Samuel Kariuki.
“This is the first such transaction involving a residential development platform in our market. This milestone marks an important chapter in Mi Vida’s journey and reinforces the viability of institutional home builders in Africa,” said Samuel Kariuki, Mi Vida Homes chief executive officer.
Mi Vida which was established in 2018 as a green affordable and mid-market housing developer.
According to Louis Deppe, a partner at Actis, the transaction represents opportunity for long-term capital formation in African real estate and validates the strength of a model where global investors incubate, institutionalise and ultimately transition platforms to local ownership.
“The outcome at Mi Vida demonstrates both the scalability and invest-ability of Africa’s residential sector, underpinned by robust demand fundamentals and increasing depth in local capital markets. The continent continues to show a robust growth trajectory, where disciplined capital allocation, strong governance and institutional-grade operating models continue to unlock attractive, risk-adjusted returns for our investors,” he added.
