Additionally, as part of the June 22, 2020 Board Resolution, the board allowed CHYS/CPN to real estate conversion, which are also contemplated as per clause 3.1 of the partnership agreement. It is important to note that this board resolution has not been affected by administration and will continue, but subject to the administrator’s approval.
FAQs on Conversion
- Why Convert your Investment to Real Estate?
- A Quicker Resolution of investments holding – The assets remain valuable but illiquid, it may make sense for an investor to take the asset and exit later on
- Attractive Location - The areas of Ruaka, Kiambu County, Karen and Westlands, were our assets are located, are the best performing in their respective nodes. The good performance is informed by their proximity to business nodes and social amenities such as shopping malls, international schools and recreational facilities
- Compelling Investment Opportunity - Investors have an opportunity to purchase modern apartments offering contemporary living spaces fitted with amenities, as well as an opportunity to earn rental income from both business and leisure travelers,
- Revenue Generating Properties – The buyers in Phase 1 and 2 of the Alma are already renting out their units, as well as the Cysuites business which has remained resilient even in the phase of the pandemic induced restrictions to register occupancy of above 60.0%.
- What are the risk involved with conversion to Real Estate?
From the date of deed of exit, you leave the CHYS / CPN risk profile and move into the real estate risk profile.
- What is pooled conversion?
To facilitate investors with balances that may be lower than the value required to convert to our Real Estate projects, we have established access by pooling your investment with other investors. Pooling requires a combination of your investment with other investors in CHYS and CPN, who have balances below the required amount for conversions but are interested to convert to Real Estate. The terms of conversion shall apply as per the conversion term sheet found here, including, but not limited to the cash top up required for conversion. The essence of a pooled conversion is to allow you the opportunity to jointly move your risk exposure from CHYS & CPN into an identifiable asset, even with a lower investment value.
- Are the listed prices of the Real Estate being offered for conversion true or overpriced above market price?
The pricing for our various projects is from competitive pricing of similar projects in the market.
- Can one combine their CHYS and CPN for conversion?
Yes you can since both funds have loans with the projects on offer for conversion.
- What is the average approximate duration time to convert from time of expression of interest?
The conversion depends on how fast the relevant documents are executed by both parties.
- After conversion, what happens to the balance left in my investment account?
The funds will be put under administration, for restructuring, and monetization once the liquidity position is recovered.
- What does conversion to Cysuites Entail?
Cysuites is an Apartment and Hotel business on Church Road, Westlands that encompasses 40 rooms, a restaurant, Gym and heated Swimming Pool. The ownership after conversion will be shareholding into the Cysuites business, with one share valued at Kshs 100,000. As for returns, they will be distributed at the end of the year just as we do dividends, because a conversion will include the benefit of revenues from the other business lines (Restaurant, Gym and Swimming Pool).
- For conversions to Alma, what is the projection time for the completion and does one get the ownership documents immediately after full payment?
The Projected completion time for Alma is 2022. The ownership documents will be available after full repayment of SBM loan.
- Do you have a project that does not require a cash top up for clients not in a position to top up any cash?
For 0% cash top up, you can convert to the Phase IV of the Ridge, which is the next project after the Alma.
- For Post Covid clients, will cash top ups be needed or the investment will act as cash top up.
Cash top up will be needed for both Pre Covid and Post Covid clients converting to Real Estate.
- I want a tour to the sites to be able to select the project to convert to, how do I go about that?
We hold free weekly Site Visits every Saturday from 10am, to our various Real Estate Projects. To register for site visit, Click Here.
- For Post Covid clients, will cash top ups be needed or the investment will act as cash top up.
Cash top up will be needed for both Pre Covid and Post Covid clients converting to Real Estate.
- Where can I get the details for all the conversion options and the terms to convert?
Conversions are guided by a Termsheet, which can be found Here. You can reach out to us for more information at rei@cytonn.com and clientmatters@cytonn.com .
- How does Administration affect the clients interested in debt conversion to Real Estate?
The conversion process will not be affected by administration, and will continue even when the administration is in place. The only changes will be that the administrator will have to be notified of any conversion.
