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Stanlib opens first REITS offer at NSE

CMA chief executive Paul Muthaura (left)
CMA chief executive Paul Muthaura (left) Stanlib East Africa regional head of business Felix Gichaga (second left), Stanlib regional director James Muratha and NSE chief executive Geoffrey Odundo (right) at the NSE head office on October 22, 2015. PHOTO | COURTESY 

Investors will need a minimum of Sh20,000 to invest in Kenya’s first Real Estate Investment Trust (Reit) launched on Thursday.

Stanlib Investments' Reit which opened Thursday targets to raise Sh12.5 billion for investing in rental properties.

Stanlib will sell the Reit in units of Sh20 and investors will need to buy a minimum of 1,000 units to participate in the initial public offering (IPO).

Kenya joins South Africa and Ghana on the continent as the only markets with such an investment vehicle.

Listed

The Reit will be listed on the Nairobi Securities Exchange (NSE) on November 24 2015.

"The launch of REITs by NSE transforms investments in real estate in our country," said CMA acting chief executive Paul Muthaura.

Stanlib is owned by South Africa’s Johannesburg Stock Exchange-listed Liberty Holdings.

Knight Frank managing director Ben Woodhams had earlier said some types of properties such as offices can attract net returns of about 10 per cent but added that this is a rough estimate since insufficient data on transactions makes analysis difficult.

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