Business

‘Aggrieved’ Cytonn investors take up Ksh.2.5 billion alternative homes offer

Loading...

Cytonn Investment has earned temporal relief as it clears 20 per cent of its obligation to investors under the Cytonn High Yield Solutions (CHYS) and Cytonn Project Notes (CPN).

This is as part of the investors take up its alternative offer for housing units under its real estate projects equivalent to Ksh.2.5 billion of invested monies in the two illiquid funds.

The conversion is part of options presented to investors by the company following its inability to honor payments to investors in the funds.

“This demonstrates the advantage of investing in real tangible assets that can be seen and held even in tough times,” noted Cytonn CEO Edwin Dande.

In June last year, Cytonn invoked a force majeure (act of god) clause and a 12 months moratorium on repayments as it cited effects of the COVID-19 pandemic on its operations.

The company has struggled to rekindle the funds to make payments to its high net-worth investors and has attributed the non-payment to a slower than expected recovery in real estate sales.

Subsequently, the company has allowed investors to take up housing units under its various projects including the Alma in Ruaka and Applewood in Karen.

Loading...

The offer has nevertheless required part of the investors to make cash to-ups to match the value of their investments to housing units taken.

The management of Cytonn could not immediately disclose the number of investors who have taken the alternative homes offer or the number of units taken.

Cytonn has requested for a roll-over of investments by other investors even as it suffers the backlash of non-payment from the funds which total to Ksh.12.5 billion.

In spite of part of the investors mulling a class suit against Cytonn, the company and the investors are presently engaged in arbitration to resolve the standoff which has seen the firm enter a feisty face-off with the Capital Markets Authority (CMA).


There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
Loading...

Related posts

War Over Tenders Tears Safaricom Top Management Apart As Plot To Force Ndegwa Out Hatched

nairobi-exposed

Mitumba Traders To Be Evicted From Gikomba

nairobi-exposed

Mwalimu Sacco Faced With Troubles In Sale of Troubled Spire Bank

nairobi-exposed

Cytonn CEO Dande Warns Of Aggressive Lawsuits Against Anyone Spreading ‘Misinformation’ About His Company

nairobi-exposed

How banks doubled their profits in Covid-19 year

nairobi-exposed

Scangroup market cap falls Sh834m on former CEO dispute

nairobi-exposed

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More