Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
PROPERTY company, Tigere Real Estate Investment Trust (REIT) is set to list on the Zimbabwe Stock Exchange (ZSE) in November, a development expected to build a strong real estate sector and stimulate economic growth through infrastructure development.
According to the firm’s prospectors published today (Friday) listing is scheduled for 23 November.
“We are delighted to announce the listing of the Tigere REIT, which is an important step in developing and strengthening the capital markets as well as building a strong real estate sector within Zimbabwe,” REIT director Mr Brett Abrahamse said in a statement.
According to the prospectors, REIT has been seeded with newly completed retail property assets in line with the Finance (No. 2) Act of 2020’s qualifying requirement for tax exemption status to REITs.
The two properties that will be seeded to the Fund are Highland Park (Phase 1) and Chinamano Corner, both properties located in Harare.
By listing, the firm aims to attract focused and permanent capital for the promoter to develop further assets, support the Insurance and Pensions Commission and Ministry of Finance and Economic Development in their efforts to provide liquidity and deepen the savings pool through REIT products and also to provide retail and institutional investors quality and liquid commercial real estate investment vehicle.
Based on the prospectors, the firm said the economic growth of a nation is supported by a vibrant commercial infrastructure both industrial and retail properties to drive production and trade.
The development of quality commercial property is more than imperative in Zimbabwe as the economy is set for a path of recovery that is expected to revitalise significant economic activity.
“The participation of local beneficiaries in the development and ownership of such property fosters an inclusive capital growth and sources of passive income for average Zimbabweans.
This presents a strong case for a well-structured REIT that allows participation of investors with minimum capital requirement, offering value preservation and stable return on capital through income distributions and capital gains.
“The Tigere REIT will offer a unique opportunity to investors by giving them exposure to high quality retail property assets in strategic locations with growing demand across Zimbabwe. The Fund will target to achieve a minimum income yield, which will be backed by a diversified tenant mix of quality tenants and active asset management.”
Online Reporter