President William Ruto has launched listing of the Local Authorities Pension Trust (Lap Trust) Imara Income Real Estate Investment Trust (I-REIT) on the Nairobi Securities Exchange’s (NSE) Main Investment Market; Restricted Sub-Segment.
Lap Trust will hold 100 per cent of the Imara I-REIT securities, thus will not offer them to the public initially.
The Lap Trust Imara I-REIT will be listed as a close-ended fund at KES 20 per unit based on the net asset value of the scheme as of the time of listing, with a total of 346,231,413 units.
The valuation of the I-REIT, at the listing, will thus be KES 6,924,628,260. The units may only be transferred to persons who qualify as Professional Investors and at a minimum trade size of KES 5,000,000.
This REIT underscores some of the key objectives of the REITs policy and regulatory framework which included enabling pension funds to access liquidity, without complete disposal of the real assets that they hold, and diversification of property holdings across geographical locations and types (commercial, residential, purpose-built developments – in this case, a school, among others).
CMA Chief Executive Officer – Wyckliffe Shamiah
This listing by introduction gives Lap Trust the platform to build investor confidence in its brand through transparency and disclosure, a track record of performance and compliance with regulatory requirements.
Additionally, the listing of the Imara I-REIT confirms that REITS have a critical role in meeting the Government Agenda on housing and democratization of investment opportunities.’
The properties that will be held under Imara I-REIT include CPF Metro Park, CPF House, Pension Towers, Freedom Heights Mall and Service Plot, Man Apartment and Nova Eldoret.
The trustee is Co-operative Bank of Kenya Ltd and the REIT will be managed by Sterling REIT Asset Management Limited. The transaction adviser was Standard Investment Bank.
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