Tigere to boost investment in the property sector

Beaven Dhliwayo

Property development and asset management Company, Tigere Real Estate Investment Trust (REIT), is set to become Zimbabwe’s first listed) following the publication today of its prospectus and announcement of listing dates to the public.

Following regulatory approval in 2021, the listing of Tigere will be a significant milestone for the Ministry of Finance, the Zimbabwe Stock Exchange (ZSE), and the broader investor community.

In a statement, Brett Abrahamse of Terrace Africa Asset Management said they are delighted to announce the listing of the Tigere REIT, which is an important step in developing and strengthening the capital markets, as well as building a strong real estate sector within Zimbabwe.

“Our seed assets are already performing exceptionally well, with income and occupancy levels trading ahead of initial expectations,” he said.  

“The Tigere REIT will be listed on the Zimbabwe Stock Exchange under the symbol TIGZ and will provide an opportunity for investors to own a stake in high-quality commercial property through a highly regulated financial structure.

“The Tigere REIT, which was approved by the Securities and Exchange Commission in July 2022 is set to enhance the current property investment market through improved transparency, liquidity, and compulsory dividend pay-outs.”

According to Abrahamse, the Tigere REIT has been seeded with two new commercial retail assets, namely Highland Park and Chinamano Corner, which together have a combined total of 41 retail tenants.

He added that unit holders will also have access to extensive and innovative $50m property development pipeline, which comprises exciting commercial projects that are currently in the planning or development stage.

Over 75 percent of income earned from tenants by the Tigere REIT is USD-linked and occupancies are currently reported at 95 percent. 

Director of Frontier Real Estate, Michael Craft, said they were excited to be the first to list a REIT in Zimbabwe.

“We strongly believe this important development will boost the local property market, improve governance and give investors an opportunity to invest transparently in the commercial property sector,” he said.

Zimbabwe Stock Exchange CEO Justin Bgoni said the listing of the Tigere Property Fund is an exciting moment in the history of Zimbabwe’s property sector and the broader economy. It is a culmination of years of work and policy driven by the Minister of Finance and Economic Development, Hon. Mthuli Ncube to grow and deepen capital markets that have led to the formation of REITs in Zimbabwe.

“As the ZSE, we are indebted to the ministry’s support and believe this listing is a symbol of progress and that Zimbabwe is open for business. We look forward to seeing more REITs listed in the near future and congratulate the Tigere team on their achievement and unlocking more value for investors and facilitating economic growth in the country,”

“The Tigere REIT will provide an opportunity for both public and institutional investors to participate in well-managed newly-developed, commercial properties through the purchase of REIT units on the ZSE,” said Bgoni.

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