Vusumuzi Dube
Judith Phiri , Business Reporter
THE recently appointed Real Estate Investment Trusts (REITs) Association of Zimbabwe board has said it will ensure there is public confidence in REITs.
The launch of the association has been lauded as a historic moment for the capital markets in the country that will spur development and attract more investors for the real estate sector.
In an interview on the sidelines of the just-ended Real Estate Investment Trusts Conference in Bulawayo on Thursday, the chairman of the 13-member interim board, Integrated Properties Chief Executive Officer, Dr Mike Juru said they will ensure that they set up a solid foundation for the association.
“The association is there to augment the efforts that have been put in place prior so that they come in a more structured way.
“We as an association represent the various players that are there as the REITs ecosystem comprises of real estate professionals, property owners and investors, among others. So, we are there to ensure that everything is smooth sailing, there is coordination and the challenges in the sector are addressed such that there is public confidence in the REIT product and people are then able to invest more,” said Dr Juru.
Dr Juru said they will hit the ground running in a sector where already there is one listed REIT while others are registered.
“There is work that needs to be done and at the same time if you are a board, you are non-executive but you have to get the secretariat. So, the challenge is to capacitate the organisation for it to be able to run and address issues and the challenges that are there. As a board, our responsibility will remain to give oversight and direction to the operations of the REITs association.”
Announcing the board, the Zimbabwe Stock Exchange (ZSE) CEO, Mr Justin Bgoni said among the main objectives, the REITs association was going to promote the growth of the REIT market, to educate investors as well as to advocate for the interests of REITs with regulators and policy makers.
Ministry of Finance and Economic Development’s Financial Sector Policy deputy director, Mr Matthew Sangu said Government commends the ZSE and capital markets players for the vital initiative to establish a REITs association that will ensure an orderly engagement of investors, issuers and market participants in the REIT market.
“The Government recognises the role of REIT in deepening capital markets through diversification of financial instruments available to investors, improving financial inclusion, mobilising resources for infrastructure development and inflation hedging.
“In that regard, let me take this opportunity to reaffirm Government commitment and support on establishing robust and stable capital markets platforms in line with the aspirations of the National Development Strategy 1 (NDS1) and the country’s Vision 2030.”
The first REIT to list on the ZSE in December last year was Tigere REIT affiliated to Terrace Africa Asset Management. A REIT is a company that own or finance income-producing real estate across a range of property sectors.
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