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Proparco is providing financing for a new acquisition by Kasada and is thereby contributing to job creation through this real estate project and supporting its high-performance energy efficiency standards.
Client presentation

Kasada Hospitality Fund is an investment fund dedicated to the hotel industry. It was set up in late 2018 under the impetus and with the support of Accor and the Qatar Investment Authority, via an initial commitment of USD 500m. It aims to meet a market need in Sub-Saharan Africa created by the gap between growing demand for a diversified range of services and the shortage of the corresponding quality supply targeting international standards. Kasada Hospitality Fund ultimately aims to become the leading hotel investment platform, targeting a critical and unprecedented size in Sub-Saharan Africa. It will achieve this by building a diversified portfolio of about 30 hotels operated by Accor across the various segments of the hotel industry value chain.

Project description

This senior loan arranged by IFC is financing the fund’s first investment in Kenya, involving the acquisition of the hotel formerly operated under the Crowne Plaza brand in the Upper Hill business district in Nairobi. The loan is also financing the renovation and repositioning of the hotel. The hotel has a total of 206 rooms and, since its acquisition by Kasada in 2022, has been undergoing transformation into a combo-hotel comprising an upscale Pullman hotel with 162 rooms and a Mercure hotel with a more midscale niche and 44 rooms. The new complex will also have an office space with four floors dedicated to office rental and co-working spaces under the Wojo brand, the leading co-working brand in Europe.
It is IFC and Proparco’s second loan to Kasada. The first loan financed Kasada’s first investment in an asset portfolio in West Africa (eight hotels in Senegal, Côte d'Ivoire and Cameroon). 

By financing a new acquisition by Kasada, Proparco is affirming its countercyclical role of supporting the hotel industry which has been hard hit by the health crisis. This project is fully in line with Proparco’s mandate in the hotel industry by contributing to the development of business hotels and the institutionalization of Kenya’s hospitality sector.

Project impact

The main expected impacts of the project are as follows:  

  •  Support for maintaining 169 direct jobs over the next 5 years. These jobs will also benefit from Kasada’s adherence to the social practices of Accor Group for training and working conditions  
  •  Energy performance. Kasada is targeting an EDGE standard green building certification over the next two years

The project should thereby contribute to SDG 8 (Decent work and economic growth).
 

06/05/2023
Date of signature of the project
Sectors
Kenya
Location
Financing tool
10 075 105 Euros
Amount of funding
USD 11m loan
Financing details
KASADA
Client
Head office country
PKE1158
Project number
CES