•According to the firm Delisting from Main Investment Market Segment of the NSE and trading over the counter on the USP will provide greater flexibility in managing the REIT's portfolio.
•Under this new segment, ILAM Fahari I-REIT will remain regulated by the Capital Markets Authority.
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ILAM Real Estate Investment trust is looking to double its investment to Sh7 billion over the next three years’ after it was admitted to the Nairobi Securities Exchange’s Unquoted Securities Platform.
The move comes close to a year after receiving the regulatory green light to delist from the Main Market and switch to the Unquoted Securities Platform (USP).
The admission comes following a comprehensive Sh402 million restructuring of the REIT that allowed IFIR’s Non-Professional Investors to redeem up their units at a Redemption Offer Price of Sh11 per unit.
According to the firm Delisting from Main Investment Market Segment of the NSE and trading over the counter on the USP will provide greater flexibility in managing the REIT's portfolio.
ILAM CEO Einstein Kihanda said that this will not affect the unitholders' ability to trade their units, with Non-Professional investors (investors whose unit value are less than Sh5 million) bundled into a Nominee Account.
In the growth plan ILAM will seek high-quality assets in prime locations with strong tenants and aims to double its portfolio value from Sh3.5 billion to Sh7 billion within the next three years.
“The next path is start building a pipeline in terms of property to build the reit so that it builds a property portfolio. We will be looking to acquire news assets to increase assets under management,” said Kihanda.
He said the move will enable the company to unlock the REIT’s full growth potential, reduce costs, attract new investment, and acquire additional properties to reach a sustainable asset base size.
“We are upbeat about the potential of the REIT following its listing at the USP. This move provides us with increased flexibility and potential for growth. We are still exploring the opportunities out there before we make any investment decisions,” added Kihanda.
He added that the long-term plan will elevate returns and market performance through asset optimization and the growth of Assets Under Management (AUM).
“Upon successful implementation of the strategy, the REIT will consider relisting on the NSE after three years,” noted the CEO.
Under this new segment, ILAM Fahari I-REIT will remain regulated by the Capital Markets Authority.
In February, ILAM had received regulatory approval from the Capital Markets Authority (CMA) to delist the REIT from the Main Investment Market Segment (MIMS) of the NSE.
“ILAM Fahari I-REIT's presence on this platform exemplifies the platform's role in fostering growth and unlocking value in Kenya's real estate market,” Capital Markets Authority Chief Executive Officer Wycliffe Shamiah said.
NSE Chief Executive Officer Mr. Frank Mwiti added that the admission is a strategic move aimed at ensuring that the REIT is well positioned to take advantage of future growth opportunities.
"There is a need to create opportunities for Africa's growing youthful population to earn money, and the Unquoted Securities Platform provides a viable option for our youth to invest in," FSD Africa Director, Capital Markets Development Dr. Evans Osano said.