STANLIB Fahari Income REIT Launched

This week, Stanlib Kenya launched the country’s first real estate investment trust – the Fahari I-REIT.

They are aiming to raise Ksh 12.5 billion from 625,000 individual. The investors will gain from eligible real estate investments owned by Stanlib Fahari I-Reit – who will invest in properties that have commercial leases and have a portfolio mix of 75% in property and 25% in cash. I-Reit’s are required to distribute a minimum  80% profit after tax excluding fair value gains.

Quick Notes

  • Minimum is 1,000 units at Kshs 20 each so Kshs 20,000
  • Opens 22 October, Closes 12 November, 2015
  • Allotment to be done on 16 November: Plan is for 343,750 units (55%) to qualified institutional investors, East Africa retail and foreign retail 156,250 units (25%) and foreign institutions (20%)
  • It is close ended and will trade on the exchange (NSE)
  • Besides Stanlib Kenya, others authorized Reit managers include Centum Asset Managers, UAP Investment, CIC Asset Management, Fusion Investment Management and ICEA Lion Asset Management. REIT Trustees are Housing Finance Company, Co–operative Bank and Kenya Commercial Bank.
  • Also, the government recently exempted property transferred into a Reit from paying stamp duty till after 2022.
  • Stanlib announced they will buy a Nairobi mall with the cash.

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