CMA approves Fahari I-REIT’s Ksh400M restructuring bid
The Capital Markets Authority (CMA) has approved a bid by ILAM Fahari Real Estate Investment Trust (I-REIT) to convert its unrestricted ILAM Fahari IFIR into a restricted I-REIT.
The Ksh402 million restructuring move will allow IFIR’s Non-Professional Investors to redeem up to 36,585,134 units at a Redemption Offer Price of Ksh11 per unit.
ILAM Fahari I-REIT currently owns four real estate properties including a shopping centre, an office building and two semi-office/light industrial buildings, all held through special purpose vehicles.
ICEA LION Asset Management (ILAM) Chief Executive Officer Einstein Kihanda said the restructuring to a Restricted I-REIT will be the initial step in the process of moving the listing of the I-REIT from the Unrestricted Main Investment Segment of the Nairobi Securities Exchange (NSE) to the Unquoted Securities Platform (USP) administered by the NSE where it will still trade.
“The conversion to a restricted REIT will allow us to offer more specialized investment opportunities to our stakeholders, providing increased flexibility and potential for growth. The new structure aligns with ILAM Fahari’s strategic vision to optimize its investments and provide investors with innovative avenues to diversify their portfolio,” Kihanda said.
“A restricted REIT is only for professional investors and this explains why the redemption offer is for Non- Professional Investors. The Redemption Offer Price of KSH 11 per unit represents a premium of 82.72% above the current market price of KSH 6.02 per unit."
Last year, ILAM Fahari I-REIT's distributable earnings increased by 39% to Ksh141.9 million compared to Ksh102.0 million the previous year.