ICEA Lion Asset Managers’ Fahari I-REIT has made a significant move by being listed on the Nairobi Securities Exchange (NSE) Unquoted Securities Platform (USP). This follows its delisting from the Main Investment Market in February 2024 and represents a strategic shift aimed at protecting unitholder value and positioning for future growth.
The REIT, which includes assets like Greenspan Mall and 67 Gitanga Place, joins the ranks of Acorn I-REIT, Acorn D-REIT, and Linzi Sukuk on the USP. This platform offers enhanced liquidity and private capital-raising capabilities, facilitating accurate price discovery and safeguarding against settlement delays and failures.
In February, ILAM was granted regulatory approval by the Capital Markets Authority (CMA) to remove the Reit from the Main Investment Market Segment (MIMS) of the NSE.
During the bell-ringing event commemorating the REIT’s admission to the USP, Kihanda expressed optimism about its potential: ‘We see tremendous opportunities ahead with the REIT’s listing at the USP. This strategic move enhances our flexibility and growth prospects. It aligns perfectly with ILAM Fahari’s vision to optimize investments, offering investors innovative ways to diversify their portfolios.’’
A REIT is a regulated collective investment vehicle that enables persons to contribute money’s worth as consideration for the acquisition of rights or interests in a trust that is divided into units with the intention of earning profits or income from real estate as beneficiaries of the trust.
CEO of the Capital Markets Authority, Wyckliffe Shamiah, lauded the REIT’s innovative approach, emphasizing the enhanced visibility and investment opportunities this transition brings. The REIT’s oversubscribed redemption in October 2023 led to the exit of smaller investors, with non-professional investors now bundled into a Nominee Account at Cooperative Bank Kenya. The REIT may consider relisting on the main market segment following a successful USP implementation.
During the briefing NSE CEO Mr. Frank Mwiti said, “The transition from the Main Investment Market Segment of the NSE to the Unquoted Securities Platform is by no means a downgrade, but a strategic move aimed at ensuring unit holders value in the REIT is protected and the REIT is well positioned to take advantage of future growth opportunities.”
This strategic move highlight ILAM’s commitment to innovation and growth within Kenya’s real estate investment sector, providing a model for future market transitions.
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