Landmark Buyout Puts Mi Vida Homes in Local Hands

British private equity firm Actis, alongside its joint venture partner Shapoorji Pallonji Kenya, has agreed to sell property developer Mi Vida Homes to a consortium of local investors led by the company’s management, marking the partners’ exit after seven years.

According to Mi Vida CEO Samuel Kariuki, “the consortium is buying out the entire share capital of Mi Vida’s holding company, which was formed as a joint venture between Actis and Shapoorji Pallonji Kenya in 2018.” 

Mr Kariuki did not disclose the value of the buyout, which is being financed through a combination of equity and debt.

The company, which has been developing a mix of mid-market and affordable housing units at Actis-owned Garden City Mall, has recently expanded to other sites in Riruta and Ruaka. 

Mr Kariuki explained that Actis’ exit aligns with the typical seven- to nine-year investment cycle followed by private equity funds.

“Management has brought together a consortium of local institutional capital, and they [management] have also invested themselves directly. The combination of that will acquire the platform from Actis,” said Mr Kariuki, declining to name the other investors involved. 

“Given that they jointly owned the holding company, Actis and Shapoorji Pallonji Kenya will both exit.”

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The sale underscores confidence in Mi Vida’s leadership and has facilitated the involvement of local institutional investors. Such management-led buyouts remain a relatively rare exit strategy for private equity, which usually opts to sell to other funds or strategic investors that can offer a premium and speedier closure.

Actis and Shapoorji Pallonji Kenya had initially set up Mi Vida with Sh12 billion in committed funding, half earmarked for a 740-unit Garden City development, Amaiya. Of these, 221 units have been completed, with 249 more expected by March 2026. 

Over the years, additional projects and funding increased the gross development value of the platform to Sh52 billion, with a total of 3,900 housing units in the pipeline across four Nairobi sites.

“This hurdle rate has been met and exceeded,” Mr Kariuki said, referring to the targeted internal rate of return of 25 percent in shilling terms or 15 percent in dollar terms.

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Louis Deppe, a partner at Actis, added, “We believe this transaction highlights the depth of 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.”

Mi Vida has also expanded into affordable housing since 2022, now accounting for 70 percent of its portfolio. Mid-market units are priced between Sh8 million and Sh20 million, while affordable units range from Sh2.5 million to Sh8 million. 

Bulk sales to investors, such as the 200 units sold to International Housing Solutions in August 2023, have been part of the company’s growth strategy.

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