BUSINESS REPORTER
The Tigere Property Fund is set to list its Real Estate Investment Trust (REIT) on the Zimbabwe Stock Exchange (ZSE), making history as it will be the first in the country.
The Initial Public Offering (IPO) prospectus was published Friday.
It comes after the Securities and Exchange Commission approved Tigere REIT in July this year.
The REIT is expected to enhance the current property investment market through improved transparency, liquidity and compulsory dividend pay-outs.
“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. Our seed assets are already performing exceptionally well, with income and occupancy
levels trading ahead of initial expectations,” Brett Abrahamse of Terrace Africa Asset Management said.
The Tigere REIT will be listed on the Zimbabwe Stock Exchange (ZSE) under the symbol TIGZ and will provide an opportunity for investors to own a stake in high quality commercial property through a
highly regulated financial structure.
According to Abrahamse, the Tigere REIT has been seeded with two new commercial retail assets, namely Highland Park and Chinamano Corner, which together have a combined total of 41 retail tenants.
Over 75% of income earned from tenants by the Tigere REIT is US$ linked and occupancies are currently reported at 95%.
“We are very excited to be the first to list a REIT in Zimbabwe. We strongly believe this important development will boost the local property market, improve governance and give investors an opportunity to invest transparently in the commercial property sector” said Michael Craft, Director of Frontier Real Estate, the REIT Promoter.
ZSE CEO, Justin Bgoni, said: “The listing of the Tigere Property Fund is an exciting moment in the history of Zimbabwe’s property sector and the broader economy. It is a culmination of years of work and policy driven by the Minister of Finance and Economic Development, Mthuli Ncube to grow and deepen capital markets that has led to the formation of REITs in Zimbabwe.
“As the ZSE, we are indebted to the ministry’s support and believe this listing is a symbol of progress and that Zimbabwe is open for business.
“We look forward to seeing more REITs list in the near future and congratulate the Tigere team on their achievement and unlocking more value for investors and facilitating economic growth in the country.”