Fusion Capital has extended the sale of its Sh2.3 billion development real estate investment trust (D-Reit) by one-and a half weeks to July 26, saying it will give investors more time to pool funds to buy into the issue.
The sale of the D-Reit opened on June 23 and was to run until July 15, with the developer aiming to raise funds to finance the development of Greenwood City, a mixed use real estate project in Meru County.
The D-Reit is targeting high net worth investors and fund managers, who require a minimum of Sh5 million (equivalent to 218,000 units) to participate in the offer in which a total of 100 million units are on sale at Sh23 each.
“Investors have requested for some additional time to pool resources and prepare their applications accordingly…we have had several meetings to enable fund managers to dissect and fully comprehend this investment instrument,” said Fusion Capital CEO Luke Kinoti.
The D-Reit will now be listed on the Nairobi Securities Exchange on August 10, instead of the earlier planned July 28.
A Reit is a unit of ownership in a real estate project allowing retail investors to participate in the capital intensive sector which has reaped high returns in the last decade.
The fusion capital issue is the first development Reit to be sold in Kenya. Last year, Stanlib sold the first investment Reit (Fahari I-Reit), which realised Sh3.6 billion out of the targeted Sh12.5 billion from investors.