WHEN Eagle REIT listed on the Victoria Falls Stock Exchange (VFEX) in May 2025, it marked a symbolic turning point for Zimbabwe’s foreign currency-denominated bourse.
As the first REIT to list on the VFEX, Eagle was viewed as a litmus test for whether the exchange could move beyond its long-standing liquidity constraints and begin attracting long-term capital into income-generating assets.
Seven months later, we are here to review how the journey has been. With the VFEX All Share Index up 62% year-to-date (as of December 12, 2025) — driven largely by outsized gains in Padenga and Innscor — the upcoming listing of Pfuma REIT on February 4, 2026, arrives into a far more constructive market environment.
The strong performance of the VFEX in 2025 has altered investor perceptions. Padenga and Innscor have delivered capital gains of approximately 93% and 164% respectively, demonstrating that the exchange can, under the right conditions, unlock value rather than merely preserve capital.
Against this backdrop, Eagle REIT’s more muted 11% gain since listing highlights a key distinction between REITs and operating equities: while growth counters thrive on earnings momentum and commodity tailwinds, REITs seems ultimately judged on income stability, yield sustainability, and portfolio quality rather than price acceleration.
It is within this context that Pfuma REIT’s proposed listing should be assessed — not as a short-term trading opportunity, but as a test of whether VFEX-listed property vehicles can deepen market breadth while offering predictable, US dollar-denominated income.
Pfuma REIT is seeking to list by way of introduction following a private placement of 250 million units at an offer price of US$0,10 per unit, bringing total units in issue to 471 million.
The fund is seeded with two flagship retail assets — Chegutu Retail Centre and Hogerty Hill Centre — providing an initial gross lettable area (GLA) of 16,107 square metres.
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Chegutu is already fully-occupied, while Hogerty Hill stands at 70% occupancy with management targeting full occupation by the first quarter of 2026.
At full occupancy, the seeded portfolio is expected to generate a gross rental yield of approximately 7%.
Pfuma fund plans to acquire Cork Corner, a fully-tenanted QSR mall owned by a Simbisa Brands subsidiary, at a valuation of US$6,94 million through the issuance of new units, subject to regulatory approval.
Cork Corner currently operates at 100% occupancy and offers a gross rental yield of roughly 7,8%.
Beyond this, the REIT intends to deploy listing proceeds into four additional developments — Projects Eastlea, Chivhu, Yellowstone, and Silverbrook — which collectively add approximately 18 000 square metres of GLA and are projected to deliver gross rental yields of up to 11% in their first full year of operation, assuming full occupancy.
On a blended basis, Pfuma targets a gross rental yield of 7–8% from year two of operations, positioning it at the upper end of locally-listed REITs and marginally ahead of peers such as Tigere and Eagle, which generally target yields closer to 6–7%.
This yield premium reflects Pfuma’s focus on retail-anchored assets located in high-traffic, previously underserved nodes, as well as long-term US dollar leases that are structured to benefit from either fixed base rentals or turnover-linked escalations.
From a governance and structural standpoint, Pfuma adopts a conventional open-ended REIT structure, managed by Arctic Blue Asset Management, with CABS Custodial Services acting as Trustee.
The fund is required to distribute at least 80% of distributable income to unit-holders, in line with REIT regulations, and all distributions will be paid in US dollars.
As long as the REIT maintains compliance with regulatory requirements, its rental income remains exempt from income tax, enhancing distributable yield efficiency.
Nevertheless, there are considerations investors would do well to monitor. The prospectus notes that, following the Cork Corner acquisition, ownership concentration could see three unit-holders holding up to 54% of the fund, a structure that must be regularised by March 2026 to preserve REIT tax benefits.
While this does not detract from the quality of the underlying assets, it underscores the importance of execution discipline during the early phases of the REIT’s lifecycle.
Comparatively, Tigere REIT continues to dominate liquidity on the ZSE, benefiting from local-currency pricing and consistent quarterly USD dividends, while Eagle REIT’s VFEX listing has yet to catalyse meaningful secondary market activity.
Pfuma’s success may therefore hinge less on headline yield metrics and more on whether it can achieve sustained trading volumes in an exchange that is only now beginning to demonstrate depth.
In many respects, Pfuma REIT represents a logical evolution rather than a disruptive leap. Its asset mix, tenant quality, and yield targets are familiar, but its timing is arguably better.
With VFEX sentiment improving, institutional investors seeking prescribed-asset compliance, USD income, and diversification away from operational equity risk may find Pfuma an appropriate fit —provided expectations remain anchored around income generation rather than rapid capital appreciation.
Ultimately, Pfuma REIT’s listing will serve as another data point in assessing whether Zimbabwe’s REIT market can mature alongside a revitalised VFEX.
If successful, it may reinforce the notion that while momentum drives equities, it is disciplined execution and dependable cash flows that will define the long-term relevance of REITs in the local capital markets.
Taimo is an investment analyst with a talent for writing about equities and addressing topical issues in local capital markets. He holds a First Class Degree in Finance and Banking from the University of Zimbabwe. He is an active member of the Investment Professionals of Zimbabwe community, pursuing the Chartered Financial Analyst charter designation.
