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[Kenya] CMA approves listing of LAP Trust Imara Income Real Estate Investment Trust

[Kenya] CMA approves listing of LAP Trust Imara Income Real Estate Investment Trust

The Capital Markets Authority (CMA) has announced the approval of a listing by introduction of the Local Authorities Pension Trust (Laptrust) Imara Income Real Estate Investment Trust (I-REIT) on the Nairobi Securities Exchange’s (NSE) Main Investment Market; Restricted Sub-Segment. Laptrust will hold 100 percent of the Imara I-REIT securities, thus will not offer them to the public initially.

The Laptrust Imara I-REIT will be listed as a close-ended fund at Kes.20 per unit based on the net asset value of the scheme as at the time of listing, with a total of 346,231,413 units. The valuation of the I-REIT, at listing, will thus be Kes. 6,924,628,260. The units may only be transferred to persons who qualify as Professional Investors and at a minimum trade size of KES 5,000,000.

Speaking about the approval, CMA Chief Executive Officer Wyckliffe Shamiah noted, ‘This REIT underscores some of the key objectives of the REITs policy and regulatory framework which included enabling pension funds to access liquidity, without complete disposal of the real assets that they hold, and diversification of property holdings across geographical locations and types (commercial, residential, purpose built developments – in this case a school, among others).  

This listing by introduction gives Laptrust the platform to build investor confidence in its brand through transparency and disclosure, a track record of performance and compliance with regulatory requirements. Additionally, the listing of the Imara I-REIT confirms that REITS have a critical role in meeting the Government Agenda on housing and democratization of investment opportunities.’ 

The properties that will be held under Imara I-REIT include: CPF Metro Park, CPF House, Pension Towers, Freedom Heights Mall and Service Plot, Man Apartment and Nova Eldoret.

The trustee is Co-operative Bank of Kenya Ltd and the REIT will be managed by Sterling REIT Asset Management Limited. The transaction adviser was Standard Investment Bank.


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