Online Reporter
Business Reporter
The Tigere Property Fund intends to acquire two income-generating real estate assets, the Greenfields Retail Centre and phase 1 of the Zimre Park Retail Centre, for about US$25,1 million.
According to a circular published by the fund last week, the acquisitions, which require unitholder approval, will be settled entirely through the issuance of 770,5 million new Tigere REIT units.
This transaction, which follows the successful acquisition of Highland Park Phase 2, is the REIT’s second post-IPO acquisition and is intended to further its strategy of generating stable income and capital growth through quality, income-generating real estate backed by long-term, US dollar-denominated leases.
The total purchase consideration is based on the aggregate net asset value of the target properties and will be settled through the issuance of 770 500 000 units, which represents 41,8 percent of the enlarged number of units in issue post-transaction, totalling 1 841 105 000 units.
The implied issuance price per unit for the acquisition is US3,26 cents, representing a 2,536 percent premium on the fund’s Net Asset Value (NAV) per unit of US3,18c as at June 30, 2025.
The larger component of the transaction is the acquisition of the Greenfields Retail Centre on a leasehold basis.
According to the circular, the development, which started in mid-December 2024, comprises 54 tenants across approximately 14 000m² of gross lettable area (GLA) with a committed occupancy of 100 percent.
The centre has rapidly established itself as a premier destination, boasting high foot traffic driven by its vibrant mix of food, entertainment, and retail.
Key tenants include Spar, KFC Drive-Thru, Spur, and the entertainment facility Rollers, which offers roller-skating, virtual gaming, and bowling. Notably, the centre introduced Zimbabwe’s first international Hungry Lion store.
Future plans for Greenfields include the development of a new Steers Drive-Thru, convenience store, and fuel station set to commence trading in the fourth quarter of this year and a landmark Jurassic Safari Theme Park on track for completion in the first half of 2026.
All leases at Greenfields are fully exposed to US dollar rentals.
The second asset, Phase 1 of the Zimre Park Retail Centre, consists of a newly developed Steers Drive-Thru operated by Simbisa Brands.
Strategically positioned along the busy Harare-Mutare Highway, the asset is designed to serve both the high volume of daily commuters and the substantial, fast-growing residential catchment area.
The phase has a GLA of 220m² and also features 100 percent committed occupancy and full US dollar lease exposure. The initial phase is part of a larger development plan, with a second phase, including a main anchor and retail line shops, slated for completion in mid-2027.
The Greenfields Retail Centre is being acquired from the REIT sponsor’s wholly-owned subsidiary, Greenfields Property Development Company (Private) Limited, while the Zimre Park Drive-Thru is being acquired from Modern Touch Investments.
The transaction is structured as an asset swap, with 743,211,256 new units being issued for the Greenfields acquisition and 27,288,744 new units for the Zimre Park asset. The sellers have also agreed to settle all property-related costs, including stamp duties, costs of lease cession, and conveyancing fees.
Unitholders will vote on the proposed transaction at an Extra Ordinary General Meeting to be held via online teleconference on November 3, 2025.
