Mi Vida Homes management buys out the developer's owners

Mi Vida Homes Ltd management has bought out the developer’s owners at an undisclosed amount, seven years after the company was incorporated.

A statement from Mi Vida Homes indicated that the developer has reached a share purchase agreement for a management-led buyout of the business from Actis, a private equity fund.

The buyout is, however, subject to regulatory approval. The amount involved in the transaction has also not been disclosed.

Actis, in partnership with Shapoorji Pallonji incorporated Mi Vida Homes in 2018, injecting Sh15.6 billion ($120 million) into the business.

The statement from the developer described the transaction as a key milestone for the firm, created to provide green affordable housing for the mid-market.

“We believe the transaction demonstrates that institutional residential developers can be successfully incubated, scaled and developed to investment-grade quality, positioning them for local capital markets participation,” the statement says.

Mi Vida Homes Chief Executive Samuel Kariuki said such is the first transaction involving a residential development platform in the Kenyan market.

He described the deal as an important chapter in Mi Vida’s journey, which also reinforces the viability of institutional home builders on the continent.

“It demonstrates that institutional home builders can be nurtured to scale in Africa, operating at high standards of ESG and financial discipline,” he says in the statement.

“From inception, our ambition has been to deliver high-quality, sustainable housing solutions tailored to the needs of the local market, while operating with the highest standards of governance and financial discipline.”

Kariuki said Mi Vida today holds a strong balance sheet, a diversified capital base, and a healthy pipeline of projects that are well-positioned to scale further and deepen the developer’s impact.

“We are grateful for Actis’ invaluable role in building a solid investment-grade platform that is anchored on sustainability and high governance standards,” he said.

Louis Deppe, Partner at Actis, said the 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 transition platforms to local ownership.

Deppe said Actis’ Africa real estate business has been a pioneer in evolving from investor-developers to true platform builders in Africa.

“The outcome at Mi Vida demonstrates both the scalability and investability of Africa’s residential sector, underpinned by robust demand fundamentals and increasing depth in local capital markets,” he said.

He said 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.

“We have great confidence in the Mi Vida management team and believe their vision, execution capability, and commitment to excellence will drive the platform’s continued success in its next phase of growth,” he added.

Ravi Rughani, Principal at Actis, said the transaction is not only a validation of the vision set out in 2018, but also a clear demonstration of the institutionalisation of Africa’s residential real estate sector.

“Over the past six years, Mi Vida has been transformed into a platform with investment-grade governance, a robust balance sheet, and a well-diversified funding base - qualities that resonate with both international and domestic capital providers. Importantly, the platform has achieved this while addressing urgent housing demand in the local market and delivering strong dollar returns to our investors,” said Rughani.

Rughani said the successful transition of ownership to a management-led consortium underscores the strength of the team.

“This transaction reflects the core of Actis’ philosophy: creating sustainable and scalable businesses that deliver long-term value while addressing critical local needs. We look forward to watching Mi Vida continue to grow and thrive in its next chapter,” he said.