Zimbabwe is about to welcome its first real estate investment trust (REIT) denominated in US dollars. Named EAGLE REIT, the fund is scheduled to list this Friday on the Victoria Falls Stock Exchange (VFEX) — a US dollar-based platform that’s gaining popularity in a country still grappling with currency instability.
Spearheaded by Fidelity Life Asset Management, EAGLE REIT aims to raise $62 million, with $24.5 million already secured through a private placement. The proceeds will support real estate projects in the resort city of Victoria Falls and in Mazowe, a rural area north of Harare.
The VFEX was preferred over the local-currency Zimbabwe Stock Exchange (ZSE) because, according to Bevin Ngara, Managing Director at Fidelity Life Asset Management, it is "easier to demonstrate value creation in dollars than in an emerging currency."
Rising Interest in Real Estate Investment
While EAGLE REIT is the first of its kind on the VFEX, Zimbabwe already has two REITs listed on the ZSE — Tigere Property Fund and Revitus — both denominated in the local currency. These vehicles have drawn increasing attention from institutional investors looking to hedge against inflation, political uncertainty, and repeated currency devaluations.
The trend is evident in recent data: by the final quarter of 2024, 47% of managed funds were allocated to real estate, up from 43.6% the previous quarter, according to the Securities and Exchange Commission of Zimbabwe.
Why REITs Appeal to Zimbabwean Investors
REITs offer a simplified way to invest in property without owning physical assets. They are generally more liquid, provide regular income through dividends, and require no direct management by investors.
“Investors are more focused on steady dividend payouts than on capital gains,” says Ngara. Lloyd Mlotshwa, head of research at IH Securities, adds that REITs can be bought and sold much faster than actual properties — a crucial advantage in a volatile market.
A Sector Gaining Momentum
EAGLE REIT’s listing comes as the real estate sector in Zimbabwe shows signs of renewed energy. The success of Tigere REIT, which is set to pay its 10th dividend, has already whetted investors’ appetite for this asset class. In its latest update, Tigere described property as the "favored option" for investors seeking shelter from currency shocks and noted strong interest from individuals, corporates, and pension funds.
Despite concerns about price overheating, the market still shows clear supply gaps — particularly in warehousing, affordable housing, retail infrastructure, and office space.
