THE Tigere Property Fund (Tigere) is set to become the country’s first listed Real Estate Investment Trust (REIT) following the publication of its prospectus and announcement of listing dates.
A REIT consists of a trustee who takes legal ownership of the assets within the trust and ensures the funds are used for their intended purposes, a manager who oversees the scheme and the trust deed.
A REIT has a prospectus — a document that details the investment strategies and policies to achieve the trust’s stated objectives, including future detailed plans.
Following regulatory approval in 2021, the listing of Tigere will be a significant milestone for the country’ economic growth, the firm said in a statement on Friday.
“We are delighted to announce the listing of the Tigere REIT, which is an important step in developing and strengthening the capital markets, as well as building a strong real estate sector within Zimbabwe,” Brett Abrahamse of Terrace Africa Asset Management, said.
“Our seed assets are already performing exceptionally well with income and occupancy levels trading ahead of initial expectations.”
The Tigere REIT will be listed on the Zimbabwe Stock Exchange under the symbol TIGZ and will provide an opportunity for investors to own a stake in commercial property business.
The Tigere REIT, which was approved by the Securities and Exchange Commission in July 2022, is set to enhance the current property investment market through improved transparency, liquidity and compulsory dividend pay-outs.
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According to Abrahamse, the Tigere REIT has been seeded with two new commercial retail assets, namely Highland Park and Chinamano Corner, which together have a combined total of 41 retail tenants.
Over 75% of income earned from tenants by the Tigere REIT is US dollar linked and occupancies are currently reported at 95%, the firm said.
“We are very excited to be the first to list a REIT in Zimbabwe.
“We strongly believe this important development will boost the local property market, improve governance and give investors an opportunity to invest transparently in the commercial property sector,” Michael Craft, director of Frontier Real Estate, the REIT promoter, said.
ZSE CEO Justin Bgoni said the listing of the Tigere Property Fund was an exciting moment in the history of Zimbabwe’s property sector and the broader economy.
Bgoni said it was a culmination of years of work and policy driven by Finance minister Mthuli Ncube to grow and deepen capital markets that has led to the formation of REITs in Zimbabwe.
“As the ZSE, we are indebted to the ministry’s support and believe this listing is a symbol of progress and that Zimbabwe is open for business,” he said.
“We look forward to seeing more REITs listed in the near future and congratulate the Tigere team on their achievement and unlocking more value for investors and facilitating economic growth in the country.”
Abrahamse said the Tigere REIT will provide an opportunity for both public and institutional investors to participate in well managed newly-developed, commercial properties through the purchase of REIT units on the ZSE.
“Unit holders will also have access to our extensive and innovative US$50 million property development pipeline, which comprises exciting commercial projects that are currently in planning or development stage,” he added.