Online Reporter
IN a landmark move hailed as a “critical leap forward” for Zimbabwe’s economic transformation, the Eagle Real Estate Investment Trust (REIT) officially listed on the Victoria Falls Stock Exchange (VFEX) on May 16.
The momentous occasion, celebrated at a ceremony in the tourism capital, Victoria Falls, marks the first REIT listing on the VFEX and underscores the nation’s ambition to attract both domestic and international capital for infrastructure development.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube presided over the listing, emphasising its alignment with the Government’s Vision 2030.
“The listing of Eagle REIT marks not only an essential milestone for the issuer, but also a critical leap forward in the development of our capital markets and the broader economic transformation agenda of our nation,” he declared.
He further noted that this innovative asset class is “evidence of the maturing nature of our financial sector” and is in line with the drive to mobilise resources for infrastructure and economic diversification.
Prof Ncube emphasised the immense benefits of the Eagle REIT listing, including enhanced liquidity and transparency in the real estate sector, broader investor participation and improved price discovery.
Importantly, he noted that it “also de-risks development by allowing long-term patient capital to flow into infrastructure”.
He called on all stakeholders, including local authorities, regulators, pension funds and banks, to support the development of the real estate sector for the long-term benefit of the nation.
Prof Ncube highlighted the significant economic impact of the Eagle REIT’s upcoming projects, including job creation in construction, advancements in housing, enhanced tourism infrastructure and the formalisation of previously informal real estate assets.
He pointed to the projected 6 percent economic growth for Zimbabwe in 2025, driven by improved agriculture and power generation, with infrastructure development playing a pivotal role.
He affirmed that the Eagle REIT’s initiatives “align seamlessly with these national objectives, positioning it as a key contributor to Zimbabwe’s envisioned economic advancement”.
ZHL board chairperson Mr Desmond Matete, whose group promoted the Eagle REIT through Fidelity Life Asset Management, provided a historical context, highlighting ZHL’s long-standing legacy in infrastructure development across Zimbabwe.
From the Zimre, Nicoz and Fidelity centres in provincial capitals to significant housing projects and the Sawanga Mall in Victoria Falls, ZHL’s footprint is substantial.
Mr Matete expressed his conviction that “the Eagle REIT is an opportunity for Zimbabweans to directly participate in building the Zimbabwe they want through a viable local savings product managed by a reliable, tested and trustworthy brand”.
The Eagle REIT’s portfolio features two anchor projects: Mazowe Walk and the Victoria Falls Eagle Heights mixed-use development.
Phase one of Mazowe Walk, situated on 6,9 hectares of land, showcases modern and environmentally conscious building technologies.
The ambitious US$43 million Victoria Falls Eagle Heights, located on a 12,3-hectare site, will comprise a 120-key international hotel (estimated at US$25,5 million), a high-end 36-bed tourism hospital (approximately US$8,1 million), a service station (around US$1,5 million) and 154 mid-range residential units (valued at about US$7,7 million).
Mr Matete highlighted the progress of the Victoria Falls project, stating that civil works, including roads and stormwater drainage, were 95 percent complete and within budget.
He underscored the strategic importance of listing on the VFEX, explaining that it targets both local and international investors with a predominantly US dollar-denominated fund.
This, he stated, is about “resource mobilising for select high-impact developments in Zimbabwe with capacity to confer competitive returns to reward investors for their participation and at the same time contributing towards the critical infrastructure stock of this country”.
He pointed out that this move aligns with the Government’s designation of Victoria Falls as a special economic zone for tourism development and offshore financial services.
Mrs Caroline Sandura, the Zimbabwe Stock Exchange group board chairperson, echoed the progress and innovation sentiment.
“Today marks not just another listing, but a powerful milestone that reflects innovation, progress and confidence in Zimbabwe’s capital markets,” she asserted, congratulating Fidelity Life Asset Management for its “leadership, vision, and tenacity” in bringing the first REIT to the VFEX.
Mrs Sandura elaborated on the benefits of REITs, noting that they “allow investors to participate in large-scale, income-generating real estate projects without buying or managing properties directly”, offering transparency, liquidity and diversification.
The listing of Eagle REIT marks the 16th counter on the VFEX, which, since its inception in 2020, has been positioning itself as a “gateway for capital raising for Zimbabwe and the broader Southern African region”.
Being part of the Victoria Falls International Financial Services Centre provides the VFEX with unique advantages such as offshore settlement, tax incentives and US dollar-based trading.
Mr Matete announced that local pension funds and insurers constitute over 90 percent of the REIT at listing, a testament to their preparedness to embrace innovative investment models and the supportive regulatory environment.
He specifically thanked the Ministry of Finance, Economic Development and Investment Promotion, as well as the Insurance and Pensions Commission (IPEC), for conferring prescribed asset status on the REIT, a crucial feature for pension funds.
Mrs Sandura stressed that the listing sends an “essential signal to the market”, indicating that “Zimbabwe is open for sophisticated, long-term capital”.
She added: “It says we are not just surviving; we are building, innovating, thriving and, like an eagle, we are soaring.” – ziProperty
Online Reporter