Online Reporter
Nelson Gahadza
Senior Business Reporter
OLD Mutual Life Assurance Company is set to list the Development Real Estate Investment Trust ( Development REIT) on the Victoria Falls Stock Exchange (VFEX) by the fourth quarter of 2026.
Before the listing, OMLAC is targeting to raise US$46.2 million to fund large-scale commercial property developments.
The VFEX listing will give investors access to hard-currency real estate assets.
The US dollar-denominated REIT is expected to open for subscriptions in the third quarter of 2026, ahead of the planned listing on the VFEX in the fourth quarter.
Unlike conventional REITs, which invest in completed income-generating properties, the Development REIT enables investors to participate from the construction phase.
This allows investors to benefit from value appreciation during development while positioning them to earn long-term rental income once the projects become operational.
The trust is sponsored by Old Mutual Life Assurance Company, with Old Mutual Investment Group appointed as the asset manager.
According to the investor prospectus, the project is supported by clean freehold title, approved subdivision plans and all the necessary development permits, significantly reducing the execution risks that often delay large-scale property developments.
At the heart of the REIT is The Grange Lifestyle Estate, a master-planned mixed-use precinct that will integrate retail, healthcare, office and premium residential developments within a single estate.
Old Mutual expects the diversified asset mix to generate multiple income streams while reducing concentration risk for investors.
The development will be executed in three phases over approximately three years at an estimated cost of US$46.2 million, excluding VAT. Upon completion, the project is projected to deliver a gross rental yield of about 7.1 percent.
The largest component of the development is a lifestyle retail centre valued at US$28.8 million.
The project will provide approximately 22 536 square metres of gross lettable area and will include a supermarket, premium motor vehicle showroom, line shops, restaurants, entertainment facilities and a modern gymnasium.
Old Mutual said anchor tenants for Phase 1A have already been secured, while negotiations with prospective tenants for Phase 1B are at an advanced stage, helping to de-risk the commercial viability of the project before construction is completed.
Complementing the retail precinct will be a US$4.8 million specialist medical clinic. The 3 400-square metre healthcare facility is designed to accommodate specialist medical practitioners, broadening the REIT’s income base while creating a destination for quality healthcare services.
