Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Pfuma Fund Real Estate Investment Trust has opened a US$25 million private placement, which the REIT believes can drive Zimbabwe’s economic growth through infrastructure development, employment creation, and enhanced property market activity.
The REIT will be listed on the Victoria Falls Stock Exchange (VFEX).
Subscriptions opened on December 11 and will close on January 23, 2026.
The offer comprises 250 million units priced at US$0,10 each. Upon listing by way of introduction, a total of 471 million units will be available on the VFEX. The units are tax-exempt.
Pfuma will become the second REIT to list on the VFEX after Eagle REIT.
Arctic Blue has been appointed the investment manager, responsible for managing the REIT and its property assets on behalf of investors. CABS Custodial Services will act as the trustee, safeguarding the interests of unitholders, while IH Securities (Private) Limited has been designated the sponsoring broker.
According to the prospectus, Pfuma REIT has been seeded with a US$22,1 million retail property portfolio comprising Hogerty Hill Centre and Chegutu Retail Centre, offering a combined gross lettable area of 16 107 square metres.
Farmhouse Company seeded Hogerty Hill Centre for 186 million units, while Blue Elf Investments seeded Chegutu Retail Centre for 35 million units, both at an issue price of US$0,10 per unit.
“The fund’s portfolio is anchored in prime retail properties strategically located in high-traffic, previously underserved markets, offering strong growth potential and a diversified tenant base.”
Tenants at the two centres include TM Pick ‘n Pay, Simbisa Brands’ quick service restaurant outlets, DisPharm, Bhola, Pro Farmer and TV Sales & Home. Chegutu Retail Centre is fully let, while Hogerty Hill Centre is approximately 70 percent occupied, with full occupancy targeted by the end of the first quarter of 2026.
“These properties generate approximately seven percent in gross rental yield at 100 percent occupancy,” the prospectus states, with investor returns projected at between seven and eight percent and quarterly dividend distributions of about five percent.
The fund said the listing offered investors access to a professionally managed income-generating real estate portfolio, supported by tax efficiencies and enhanced dividend yields.
“Backed by blue-chip tenants such as Simbisa and TM Pick n Pay and other high-quality tenants, including DisPharm, Bhola, Pro Farmer and TV Sales and Home, the properties offer long-term stability and income visibility, boosting confidence and driving investor demand.
“As demand builds, so does the upside potential, making this REIT a compelling gateway into Zimbabwe’s high-growth real estate sector.”
The proposed transaction is expected to raise capital to leverage growing demand in the retail real estate sector and to invest in previously underserved regions with strong yield prospects.
The rationale for the transaction includes enhanced liquidity through free tradability on an exchange, transparent and market-driven valuation of the underlying property portfolio and favourable tax treatment. The REIT is also expected to contribute to Zimbabwe’s economic growth through infrastructure development, employment creation and increased activity in the property market.
The prospectus outlines an expansion pipeline beginning in the first quarter of 2026 with the acquisition of Cork Corner.
“In the first quarter of 2026, the fund will further expand through the acquisition of Cork Corner, a well-established QSR mall currently owned and operated by Simbisa Brands Limited’s subsidiary Sunrise Children,” the document states, adding that the transaction will be settled through the issuance of Pfuma units and will be “subject to VFEX regulatory approval.”
Cork Corner, another real estate property in the REIT, has a gross lettable area of 1 203 square metres and is expected to deliver a gross rental yield of about 7,8 percent.
“Proceeds from the Pfuma REIT’s listing will be strategically deployed in high-impact commercial growth acquisitions across Zimbabwe,” the prospectus said.
“These new properties are expected to be operational within the 2026 calendar year, comprise approximately 18 000 square metres of gross lettable area and are projected to generate an estimated gross rental yield of 11 percent in their first year of operations, assuming 100 percent occupancy.”
IH Securities said the REIT launched with a US$22,1 million seed capital portfolio anchored by established tenants.
“The REIT launches with a US$22,1 million seed portfolio of income-generating retail properties anchored by tenants such as TM Pick n Pay, Simbisa Brands, DisPharm, Bhola, Revo and TV Sales & Home, providing dependable USD rentals and forecast gross rental yields of 7 percent-8 percent.”
On the development pipeline, IH Securities said Pfuma was raising US$25 million to fund four pre-tenanted retail developments in Harare, Chivhu, Ruwa and Kwekwe.
“These projects are expected to yield gross rental returns ranging from 9 percent – 12 percent and grow the portfolio to approximately US$50 million,” IH Securities said.
