The Sunday News
Vuyisile Mlilo, Sunday News Business Reporter
THE launch of the Real Estate Investment Trust (REIT) Association of Zimbabwe has been lauded as a historic moment for the capital markets that will spur development and attract more investors for the real estate sector.
In a keynote address at the inaugural Real Estate Investment Trusts Conference in Bulawayo on Wednesday, the Insurance and Pensions Commission (Ipec) Commissioner Dr Grace Muradzikwa said the development was a significant milestone.
“In my view this event marks a significant milestone in the history of the country’s capital market. As the insurance and pensions regulator we have been very supportive of this initiative in Zimbabwe which in our view does not just aid the development of local capital markets but also directly addresses investment needs,” said Dr Muradzikwa.
The two days conference is being hosted by the Real Estate Investment Association of Zimbabwe together with the Zimbabwe Stock Exchange (ZSE).
“I recall lobbying for tax incentives with ZSE and the Securities Exchange Commission of Zimbabwe (SecZim) at the Ministry of Finance and Economic Development for three years. We are still lobbying for more REITs even in other markets.”
Dr Muradzikwa said she was delighted that their efforts were not in vain and were successful as this resulted in tax incentives culminating in the listing of the first real estate investment trust on the ZSE.
Tigere Real Estate Investment Trust (REIT) became the first REIT to list on the ZSE in December last year.
She said as the they have been highly supportive of the initiative to establish REITs in the country as such initiative not only contribute to the development of the local capital market but also directly addresses investment needs in the country for individuals and pensions funds.
A REIT is a company that own or finance income-producing real estate across a range of property sectors.
These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.
The conference brought together industry professionals, stakeholders and investors fostering discussions on the current real estate landscape and exploring investment opportunities.
Among key discussions were on investment strategies, risk management, legal frameworks and technological advancements in the sector.
