The fund to be raised through a property investment fund will trade on the NSE Kenya’s capital markets could soon get a new type of investment product after Two Rivers International Finance & Innovation Centre (TRIFIC) announced plans to raise nearly $30 million (about Sh3.88 billion) from the public.
The fund to be raised through a property investment fund will trade on the Nairobi Securities Exchange (NSE). The company says it expects the fund, known as the TRIFIC Green USD Income Real Estate Investment Trust (I-REIT), to be listed on the NSE by the end of June after the public offer closes on June 12.
The investment vehicle is backed by the North Tower building at the Two Rivers International Finance and Innovation Centre Special Economic Zone (SEZ) in Nairobi. TRIFIC says the minimum investment has been set at $1,000 (about Sh129,000), allowing smaller investors to participate alongside pension funds, insurance firms and wealthy individuals.
“This is a dollar-denominated I-REIT and the dividend yield is eight per cent payable twice a year,” said TRIFIC SEZ chief executive Brenda Mbathi. For ordinary investors unfamiliar with REITs, an Income REIT works similarly to buying shares in a company, except the money is invested in income-generating property.
Investors then earn returns from rental income collected from tenants. The company aims to raise $29.8 million (Sh3.86 billion), equivalent to 80 per cent of the value of the building backing the REIT. The North Tower, which is already fully occupied, currently earns about $3.2 million 9Sh414.53 million) annually in rent from multinational firms operating in technology, outsourcing, financial services and consulting.
One of the main tenants is global outsourcing company Teleperformance, which occupies nearly half of the available office space.