The Sunday News
Judith Phiri, Business Reporter
Tigere Real Estate Investment Trust (REIT) has been listed on the Zimbabwe Stock Exchange (ZSE) through an Initial Public Offer ahead of maiden trading on the bourse which started today (Thursday).
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.
Tigere REIT is affiliated to Terrace Africa Asset Management.
The Tigere REIT offer was announced on October 28, 2022 and closed on November 25, 2022 after receiving 243 647 792 subscriptions out of 255 323 000 units on offer which is about 95, 427 percent subscription rate.
In a statement, ZSE said it was pleased to announce the listing of the first REIT and the trading in Tigere REIT securities will commence with effect from 01 December 2022.
“The Tigere REIT Initial Public Offering (IPO) had a 95.427 percent subscription level with 243 647 792 units being subscribed by investors from the 255 323 000 units on offer. The IPO was also open to retail investors who were able to participate through the online trading platforms such as ZSE Direct.”
In a keynote address, the Minister of Finance and Economic Development Professor Mthuli Ncube emphasized how property will always be a key contributor to the economy within Zimbabwe.
He said that the REIT legislation will further encourage growth within the sector.
“Liquidity within real estate markets which the REIT provides, will be critical to the pension fund sector within Zimbabwe. IPEC has also played a pivotal role in promoting REITs by allowing REITs to be included in Pension Funds Prescribed Assets.”
Prof Ncube challenged other property owners and pension funds in the real estate and property development industry to take cue from the Tigere REIT and focus on bringing new and exciting products to the market.
ZSE board chairman, Mrs Caroline Sandura highlighted how the increase in listings is coming from the new securities that as ZSE they have been promoting in their quest to diversify their service offering.
She applauded the Minister of Finance and Economic Development Prof Ncube and his team for the tremendous support in ensuring the addition of this new instrument on our market.
The Securities Exchange Commission of Zimbabwe (SecZim) approved Tigere REIT in July this year and the REIT was duly licenced in terms of the Commission’s Collective investments Schemes Act (Chapter 24:19). The Tigere REIT will trade under the symbol:TIGZ.ZW and ISIN ZW 0009030017