THE Eagle Real Estate Investment Trust (Eagle REIT) has received approval from the Securities and Exchange Commission of Zimbabwe (SecZim) and the Victoria Falls Stock Exchange (VFEX) to the list on the bourse, with its net asset value of US$20,03 million.
According to its prelisting statement, the Eagle REIT will be listed next week Monday, with trading expected to commence on May 19.
The Eagle REIT will list 137 553 752 units on the VFEX through an introductory listing.
“The Eagle Real Estate Investment Trust (the Fund or the Eagle REIT) has been licenced by the Securities and Exchange Commission of Zimbabwe (SecZim) in terms of the Collective Investment Schemes Act [Chapter 24:19] and approved for listing on the Victoria Falls Stock Exchange by the VFEX Listing’s Committee in terms of the VFEX Listing Requirements,” the statement read.
“This pre-listing statement together with the documents specified herein, having been approved by the Issuer and the REIT Trustee, have been approved by SECZIM and the VFEX.
“This pre-listing statement comprises particulars for the listing by introduction of 137 553 752 units of the Eagle Real Estate Investment Trust on the Victoria Falls Stock Exchange.”
The units will be denominated and traded in United States dollars, as the VFEX bourse strictly trades using the greenback.
“As at December 31, 2024, the fund held total assets valued at US$23 845 140 and a net asset value of US$20 031 349,” the statement read.
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“The REIT securities shall be available for purchase by the general public as well as professional and institutional investors.
“The main source of income is net earnings from rentals from eligible real estate investments owned directly by the Eagle REIT.”
The company noted that the promoter, trustee and manager/issuer will assume full responsibility for liability for any statements and representations for the listing.
This includes the statements of other parties and experts, except opinions issued by the respective experts.
“The financial advisor, the sponsoring broker and other professional advisors have reasonably satisfied themselves as to the completeness and accuracy of the information provided by the promoter, trustee and manager/issuer and accordingly no liability is accepted in relation to information that the promoter, trustee and manager/issuer have omitted to provide,” the statement read.
The anchor investor of the REIT is Fidelity Life Assurance of Zimbabwe and Zimre Holdings Limited.
The fund manager is Fidelity Life Asset Management Company (Pvt) Ltd, and the trustee is CBZ Holdings Limited.
The company noted that the principal objective of the fund is developing, owning, managing and investing in real estate for investors seeking long-term, and resilient risk-adjusted returns.
“This is achieved by investing in resilient property sectors such as tourism, health, residential and retail. A minimum of eighty percent (80%) of the REIT’s taxable income shall be distributed in the form of shareholder dividends to the Participants in each financial year,” the statement read.
The Eagle REIT portfolio includes commercial land in Mazowe and Victoria Falls valued at US$10,81 million which needs US$54,64 million to develop.
The Victoria Falls property is a mixed-use development that will include a medical facility, hotel, retail, and residential developments which needs US$42,41 million to develop.
Meanwhile, in Mazowe, this is also a mixed-use development that includes a medical facility, shopping mall, and residential development which requires US$12,22 million.
Lastly, the Eagle REIT portfolio includes a commercial stand in Chengutu valued at US$450 000 with development cost yet to be determined.
Eagle REIT also noted that it will earn revenue from sale of property assets that will have been developed under its operations.
“The income of the Eagle REIT will be tax exempt as long as it continues to comply with the REIT Regulations; remains authorised by SecZim and is registered by the Commissioner-General of Zimra,” the statement read.
“Should the Eagle Real Estate Investment Trust not comply with the REIT Regulations and cease to be a real estate investment trust scheme authorised by SecZim, then the net profits earned by the Eagle Real Estate Investment Trust Fund (including its subsidiaries), will be subject to income tax at the rate prevailing at that time.”
