The STANLIB Fahari Income-REIT Initial Public Offering is expected to kick off trading at the Nairobi Securities Exchange (NSE) on Friday, November 27.
STANLIB Fahari I-REIT, the first of its kind in the Kenyan market has received a significant amount of interest from investors, local and foreign, institutional and retail.
“This demonstrates the appetite for investable assets in this market. We are excited to be able to offer Kenyans an investment opportunity to own a stake in prime property within a regulated, stable income-earning investment vehicle. We believe that this maiden listing will set the foundation for future I-REIT listings in this market,” STANLIB Fahari I-REIT CEO Anton Borkum said while commenting on the listing.
The IPO, which sought to raise Sh2.6 billion, exceeded this threshold, by garnering a successful placement of Sh3.6 billion, following the commitment from both institutional and retail investors alike.
The offer for units in the STANLIB Fahari I-REIT has now closed.
“An important part of Kenya’s growth story is the government’s commitment to improving the business environment.
The continued rise in disposable income has brought about increased demand for goods and services, especially in quality commercial real estate,” James Muratha, STANLIB Regional Director noted.
All conditions precedent to which the IPO and listing were subject, have been fulfilled and the units will be available for trading on Friday.
An Income-REIT is a real estate investment scheme which owns and manages income generating real estate for the benefit of its investors and it provides an instrument for investing in the real estate market which offers both liquidity and a stable income stream.
The pioneering move by STANLIB to launch and list an I-REIT comes at a time when listed property as an investable asset in Kenya is under-represented in the capital market.
STANLIB has a footprint in 10 countries in Africa and manages over $46 billion in assets for both institutional and retail clients across Africa.
