THE Tigere Property Fund will acquire two properties in Harare for a combined cost of worth US$25,1 million as it moves to expand the property portfolio under its listed real estate investment trust (REIT).
The proposed acquisitions of Greenfields Retail Centre in Harare and the Zimre Park Phase 1 Drive-Thru in Ruwa are aligned with the Tigere REIT’s growth strategy and will grow its combined property portfolio 90,8% to 25 056 square metres, the company said.
According to Tigere, the inclusion of the two assets is projected to increase Tigere REIT’s portfolio value by 73,8% to approximately US$58 139 459.
This growth firmly positions the fund to achieve its stated net asset value target of US$100 million by the end of 2027.
“Subject to unitholder approval, Tigere REIT intends to acquire Greenfields Retail Centre via an underlying leasehold structure whereby Tigere REIT is assigned the lessee rights and obligations, enabling it to operate and generate income. The lease tenure is an initial 33 years, of which 31 years is remaining, with an option to renew,” Tigere said in a circular to the REIT’s unitholders yesterday.
“Greenfields is strategically positioned on the outbound section of the A5 highway (Bulawayo Road) which is Harare’s highest traffic outbound arterial. The shopping centre was designed to capitalise on home-bound travellers to suburbs and cities such as Belvedere, Warren Park, Kuwadzana, Norton, Chegutu, Kadoma, Kwekwe, Gweru and Bulawayo.
“Additionally, the lack of quality retail infrastructure within Belvedere North, South, and Ridgeview resulted in a relatively underserved retail consumer base further increasing the need for a modern convenience and entertainment hub such as Greenfields.”
Tigere said due to the retail centre’s exposure to significant outbound traffic on a key Zimbabwean corridor, Greenfields has steadily become a popular weekend entertainment destination with aspirational entertainment-based tenants such as Rollers, Rocomama’s, Chicken Inn, Pizza Inn, Spur, KFC, and Smokehouse.
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“Total net asset value of (the) target property being (purchased is) US$24 239 225 inclusive of an agreed purchase price of US$23 890 500, plus US$546 116 in cash, less tenant deposits of US$197 391,” Tigere said.
“The agreed purchase price represents a discount on the independent property valuer’s valuation… 743 211 256 units shall be issued in lieu of the purchase. The newly issued units will represent 40,4% of the post transaction number of units in issue upon completion of the proposed transaction.”
On the second transaction, Tigere is purchasing the first phase of the Zimre Park Retail Centre, which consists of a newly developed Drive-Thru, located next to KFC Zimre Park along a key urban corridor, the Harare-Mutare Highway.
“This Drive-Thru represents the initial phase of the REIT manager and sponsor’s development plans within the area. The second phase, which will include a main anchor and retail line shops, is set for completion in mid-2027,” Tigere said.
“Total net asset value of the target property being purchased (is) at an agreed purchase price of US$890 000. This agreed purchase price represents a discount on the independent property valuer’s valuation.”
Tigere said 27 288 744 units shall be issued in consideration of the purchase.
“The newly issued units will represent 1,5% of the post-transaction number of units in issue upon completion of the proposed transaction,” Tigere added.
Before the deal, Tigere had 1,07 billion units in issue under its REIT listed on the Zimbabwe Stock Exchange.
The acquisition will add 770,5 million new units, bringing the total to 1,84 billion, with the new units making up about 41,8% of the enlarged capital base.
Tigere will seek unitholder approval for the acquisitions at an extraordinary general meeting to be held via teleconference on November 3.
