Nairobi — ICEA Lion Asset Manager’s (ILAM’s) Fahari Real Estate Investment Trust has been admitted to the Unquoted Securities Platform (USP) of the Nairobi Securities Exchange (NSE) following a comprehensive restructuring of the real estate investment trust (Reit).
In February, ILAM received regulatory approval from the Capital Markets Authority (CMA) to delist the Reit from the Main Investment Market Segment (MIMS) of the NSE.
The restructuring process involved converting from an unrestricted to a restricted I-Reit.
Delisting from MIMS and trading over the counter on the USP will provide greater flexibility in managing the Reit’s portfolio and will not affect the unitholders’ ability to trade their units, with non-professional investors (investors whose unit values are less than Sh5 million) bundled into a nominee account.
ILAM CEO Einstein Kihanda expressed confidence in the REIT’s ability to thrive.
He said the move will enable the company to unlock the Reit’s full growth potential, reduce costs, attract new investment, and acquire additional properties to reach a sustainable asset base size.
“We are upbeat about the potential of the REIT following its listing at the USP. This move provides us with increased flexibility and potential for growth. The new structure aligns with ILAM Fahari’s strategic vision to optimize its investments and provide investors with innovative avenues to diversify their portfolio,” Kihanda said during the bell-ringing event to commemorate the REIT’s admission to the USP.
The decision to convert and restructure stems from the ILAM Fahari I-Reit’s comprehensive strategic review in 2021, which sought to understand the challenges the I-Reit faced and develop potential strategies to improve the returns and market performance.
Upon successful implementation of the strategy, the Reit will consider relisting on the NSE after 3 years. Under this new segment, ILAM Fahari I-REIT will remain regulated by the Capital Markets Authority.
“The unquoted securities platform plays a crucial role in our capital markets ecosystem by providing a gateway for innovative financial instruments. It promotes inclusivity, allowing a diverse range of issuers to access capital and enabling investors to participate in emerging sectors of our economy. ILAM Fahari I-REIT’s presence on this platform exemplifies the platform’s role in fostering growth and unlocking value in Kenya’s real estate market,” CMA Chief Executive Officer Wycliffe Shamiah said.
ILAM will seek high-quality assets in prime locations with strong tenants and aim to double its portfolio value from Sh3.5 billion to Sh7 billion within the next three years.
The ILAM Fahari I-Reit’s concept allows the Reit to own and manage income-generating real estate for the benefit of its investors.
