Arctic Blue Asset Management (Private) Limited has launched the Pfuma Fund Real Estate Investment Trust (REIT) with a net asset value of US$23,74 million, set to list on the Victoria Falls Stock Exchange (VFEX).
This becomes the second REIT listed on the VFEX, following Eagle REIT, which had a market capitalisation of US$24,76 million on Monday.
Arctic Blue will manage the REIT and its property assets on behalf of investors, while CABS Custodial Services (Private) Limited acts as trustee, representing the interests of unitholders.
According to the prospectus, Big Poppas (Private) Limited, a joint venture vehicle formed in 2021 for commercial property development, seeded two properties into the REIT through its subsidiaries, Blue Elf Investments (Private) Limited and Farmhouse Company (Private) Limited.
“Farmhouse Company (Private) Limited seeded Hogerty Hill Centre for 186 000 000 units at US$0,10 per unit. Blue Elf Investments (Private) Limited seeded Chegutu Retail Centre into the REIT for 35 000 000 units at US$0,10 per unit,” the Pfuma Fund REIT prospectus said.
“The REIT will subsequently raise US$ 25 million by offering 250 000 000 units at an offer price of US$0,10 per unit via a private placement and the subsequent listing of all 471 000 000 Pfuma units on the VFEX by way of introduction.”
The Hogerty Hill Centre is valued at US$18,6 million, a modern retail hub with a diversified tenant mix servicing the Hogerty Hill and Hatcliffe areas.
The Chegutu Retail Centre is valued at US$3,5 million, which is a fully leasable premise comprising two established tenants, Revo and Gain Cash & Carry.
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A 7% to 8% gross rental yield on net asset value per annum from year two of operations is expected to be realised.
The subscription window to the REIT opened on December 11 and will run until January 23, 2026.
In the first quarter of 2026, the REIT will acquire Cork Corner, a well-established quick service restaurant mall for US$6,94 million.
The mall is owned and operated by Simbisa Brands Limited’s subsidiary Sunrise Children. The acquisition will be financed through the issuance of 69 400 000 units at US$0,10 per unit.
Cork Corner is a premium quick service restaurant complex in Avondale, adding six established Simbisa outlets and a 7,8% gross yield.
This, together with Hogerty Hill Centre and Chegutu Retail Centre, will consolidate three anchor properties into the REIT with a combined value of circa US$29 million.
Financial services firm, IH Securities (Private) Limited, has been designated as the appointed sponsoring broker.
“The REIT launches with a US$22,1 million seed portfolio of income-generating retail properties anchored by tenants such as TM Pick n Pay, Simbisa Brands, DisPharm, Bhola, Revo and TV Sales & Home, providing dependable USD rentals and forecast gross rental yields of 7% - 8%.”
For the pipeline, IH Securities said Pfuma was raising US$25 million to fund four pre-tenanted retail developments in Harare, Chivhu, Ruwa and Kwekwe, strategically located along high traffic zones across the country, that are currently underserved.
“These projects are expected to yield gross rental returns ranging from 9% - 12% and grow the portfolio to approximately US$50 million,” IH Securities said.
