NRZ’s real estate trust lists on ZSE

REVITUS Property Opportunities Real Estate Investment Trust (REIT) Fund has listed its shares on the Zimbabwe Stock Exchange (ZSE) following its launch last month.

A REIT is a regulated investment vehicle under the Collective Investment Scheme Act that enables the issuer to pool investors’ funds for the purpose of investing in real estate.

In exchange, the investors receive units in the trust and as beneficiaries of the trust, share the profits or income from the real estate assets owned by the trust.

REVITUS Property Opportunities REIT Fund was launched by National Railways of Zimbabwe Contributory Pension Fund (NRZCPF) in its quest to raise funds, which will be used to renovate some of its old properties in Bulawayo and Harare.

The Fund is also meant to enhance the pension benefits of its members by improving the rental earning capacity and values of the underlying buildings.

In a statement, ZSE chief executive officer Mr Justin Bgoni said Revitus has become the second REIT to be listed following Tigere REIT, which was listed last year.

“The Zimbabwe Stock Exchange Limited (ZSE) is pleased to announce the listing of the Revitus Property Opportunities Real Estate Investment Trust (REIT) on Monday 18 December 2023.

“The Revitus REIT becomes the second REIT to be listed on the ZSE. The trading in Revitus REIT securities will commence with effect from 20 December 2023,” said Mr Bgoni.

In her welcome remarks, the ZSE board chairman, Mrs Caroline Sandura, highlighted how the market has witnessed an increased interest in REITs, and how the ZSE has undertaken several initiatives to support the growth of REITs and deepen the capital markets.

Mrs Sandura applauded the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube and his team for supporting the growth of the exchange through the addition of new products.

The ZSE launched the REIT Association of Zimbabwe mid-year, which is meant to promote the growth in the real estate sector. That saw ZSE revealing that it is expecting to see more REITS listings as the sector is growing in Zimbabwe and beyond.

On the listing of the Revitus REIT, the guest of honour, Prof Ncube said when the Government allowed for the setting up of REITs in Zimbabwe, the primary motivation was to allow pension funds who were over-exposed to the real estate asset class to use those properties to access liquidity from the capital markets and be in a position to pay member benefits timeously.

Prof Ncube challenged all capital markets to market safer, regulated products as REITs to the wider public to forestall them losing their valuable savings through Ponzi schemes.