•Laptrust will hold 100 percent of the Imara I-REIT securities, thus will not offer them to the public initially.
•The valuation of the I-REIT, at listing, will be Sh6.9 billion.
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The Local Authorities Pension Trust's (Laptrust) real estate trust has been cleared for listing at the Nairobi Security Exchange.
The Capital Markets Authority on Tuesday cleared the Imara Income Real Estate Investment Trust (I-REIT) to feature on the NSE’s main investment market, restricted sub-segment.
REITs are regulated investment vehicles that enable collective investment in real estate, where investors pool their funds and invest in a trust with the intention of earning profits or income from real estate, as beneficiaries of the trust.
Laptrust will hold 100 percent of the Imara I-REIT securities with no initial offer to the public.
It will be listed as a close-ended fund at Sh20 per unit based on the net asset value of the scheme as at the time of listing, with a total of 346,231,413 units.
The valuation of the I-REIT, at listing, will be Sh6.9 billion.
The units may only be transferred to persons who qualify as professional investors and at a minimum trade size of Sh5 million.
"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, “said CMA chief executive Wyckliffe Shamiah.
It also allows diversification of property holdings across geographical locations and types (commercial, residential, purpose built developments – in this case a school, among others.
The listing by introduction gives Laptrust 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 democratisation of investment opportunities.
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.
It joins Acorn Holdings Limited and Stanlib Fahari I-REIT, which are the other issuers in the market.
Stanlis Fahari I-REIT was Kenya’s first Real Estate Investment Trust (REIT).
The fund invested at least 75 per cent of its total asset value in real estate in strategic locations in Kenya.