Investors on the Zimbabwe Stock Exchange (ZSE) have scrambled for Tigere Property Fund real investment trust (REIT) units with its initial public offering (IPO) almost fully subscribed.
REITs are investment securities that enable the issuer to pool investors’ funds for the purpose of investing in real estate. In exchange, the investors receive units in the trust and as beneficiaries of the trust share profits from the real estate assets.
The Tigere REIT units opened on October 28, 2022 and closed on November 25, 2022.
According to the results of the initial public offering (IPO), 255 323 000 units were on offer while subscriptions received amounted to 243 647 792, translating to a subscription rate of 95 percent.
The Tigere REIT units, to be listed on ZSE on November 30, 2022, will be the first such securities to register and trade on the ZSE.
“The Tigere REIT units shall be listed November 30, 202 and will commence trading on the Zimbabwe Stock Exchange (ZSE) on December 1, 2022.
“The REIT manager would like to thank the investing public for its tremendous support of the Tigere REIT IPO and we are excited to share in this profitable journey with you,” said Tigere in a notice to stakeholders.
With a portfolio comprising two modern properties – Highland Park and Chinamano Corner, the Tigere REIT is a brainchild of Terrace Africa, which also developed the Village Walk in Borrowdale.
The REIT is expected to have more properties on its portfolio as the developer indicated it had a solid project pipeline to commence before year end across the country.
In an earlier interview, Terrace Africa managing director Brett Abrahamse said the group targeted mainly retail and commercial segments.
This comes as there is strong demand for retail space both in the central business district (CBD) and suburban space driven mainly by the budding small to medium enterprises (SMEs).
Bigger retail groups and premium brands are skewed toward shopping centres in suburban areas while office parks are preferred by businesses.
One of the planned projects entails the development of a world-class shopping center at the Harare Exhibition Park area, along the Harare – Bulawayo highway.
Abrahamse said opportunities were vast for retail and commercial segments and the Harare Exhibition Park project would boast its world class facilities asset collection.