ICEA Lion Asset Management has taken over the management of listed property fund Stanlib Fahari I-Reit after signing an agreement to acquire its former administrator Stanlib Kenya.
Stanlib’s operations included asset management and the running of the property fund and ICEA is assuming all these responsibilities.
South Africa-based insurer Liberty Holdings decided to sell Stanlib to ICEA to focus on other more profitable subsidiaries, with the transaction expected to be concluded by August.
ICEA, owned by the Philip Ndegwa family, has however moved to take over Stanlib’s operations including management of Fahari, signalling certainty of deal closure. “The parties are now pleased to announce that all the conditions precedent in relation to the transfer of the management of the Reit … have been fulfilled, with the result that such transfer became effective on 18 May 2020 and has been implemented,” said ICEA and Stanlib in a joint statement.
“ICEA is accordingly now the manager and promoter of the Reit.”
Stanlib was paid Sh70 million last year for managing the property fund, down from Sh76.5 million in 2019, indicating the kind of fees ICEA will also earn for running the Reit.