SEEFF Properties to launch hospitality and tourism REIT

Online Reporter

Real estate concern Seeff Properties is set to issue Zimbabwe’s first hospitality and tourism real estate investment trust (REIT) – the Seeff Developments Hospitality and Tourism Property Fund.

The REIT was approved by the Securities and Exchange Commission of Zimbabwe (SECZ) in January 2023.

The fund will hold hospitality and tourism assets, which include hotels, holiday homes, lodges, functions’ venues, harbours, marinas and land suitable for development into hospitality and tourism properties, as well as other hospitality and tourism assets.

Seeff Properties property development strategist Mr Wellington Mugumbate said: “The REIT will create new opportunities for investors who are eager to put their money into developing new and innovative hospitality infrastructure. The Seeff Developments Hospitality and Tourism Property Fund will support the growth and development of sustainable, well-functioning real estate and hospitality and tourism sectors in the country.”

Mr Mugumbate believes the REIT will help lower the cost of Zimbabwe’s tourism product.

The company plans to raise US$3 million by issuing equity of the REIT.

The total issue size is 300 000 units at US$10 per unit.

The offer is set to open on July 26, 2023.

Seeff Properties’ REIT will be issued as a tap issue, which means the firm will continue receiving subscriptions until the required subscription level is achieved.

The capital raise is two-pronged; first through a Series A private placement, that will be followed by a listing to a stock exchange.

The private placement is open to the public and institutional investors.

According to the REIT’s prospectus, “the fund’s hospitality and tourism properties will be diversified across several geographical areas and regions, which will help to reduce concentration risk and to provide wide product ranges for the fund’s customers and for partial use by the fund’s shareholders.”