Property fund Stanlib Fahari I-Reit has got regulatory exemption to extend a Saturday deadline to acquire real estate worth a minimum value of Sh245 million.
The Nairobi Securities Exchange-listed firm is required to hold at least 75 per cent of its net assets in income-generating real estate by September 30, as per regulations by the CMA.
Two years after listing, it has so far invested 68 per cent of its portfolio in such assets, leaving a shortfall of seven per cent or a value of Sh245 million.
“We hereby notify all Stanlib Fahari I-Reit unitholders that (the company) has been granted an extension by the Capital Markets Authority (CMA) to comply with the requirements,” Fahari said in a statement.
“Currently Stanlib’s investment property, valued at Sh2.4 billion, accounts for 68 per cent of the fund’s total net asset value, resulting in a shortfall of approximately Sh245 million.”
Fahari did not say how long the CMA extension will last. The company noted that it was unable to hit the investment target owing to expensive target properties.
The Reit says it is currently engaged in negotiations with property owners and that a transaction could be concluded in the coming months, bringing it to compliance.
The firm earlier said it was seeking to buy a hotel or an office building. It was not immediately clear whether it is pursuing these transactions.