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REAL ESTATE INVESTMENT FUNDS
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slimboss
#1 Posted : Monday, January 24, 2011 6:38:33 PM
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hi wazuans,
my plan for this year is to accumulate money for investment in real estate starting with land purchase but instead of that cash just sitting I on? b the bank earning 0.00000....% interest I wanted to put in a real estate investment fund so as to grow my savings. could u please advice me as to whether this would be a good decision & some of the funds in kenya.
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Cde Monomotapa
#2 Posted : Monday, January 24, 2011 8:27:21 PM
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slimboss
#3 Posted : Monday, January 24, 2011 11:24:23 PM
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Cde Monomotapa wrote:
www.pearlproperties.co.zw, www.dawnproperties.co.zw


are there any in kenya?
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Cde Monomotapa
#4 Posted : Tuesday, January 25, 2011 1:11:18 AM
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There r none in Kenya yet but in the news they say they r working on them. As for Zim the Co.s i've listed are trading at significant discounts to NAV. Better value what might come up in Kenya. Cheers.
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Scooby
#5 Posted : Tuesday, January 25, 2011 1:18:02 AM
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Slimboss,

The are no REITs in Kenya at the moment...but there are various companies that are waiting to establish them as soon as KRA comes around on the matter below.

About a two or so years ago, KRA had compelled the asset management companies to collect the tax on the gain and remit it to KRA as the gain was deemed to be some form of income to the investor.

This was argued by various asset management companies that it amounts to double taxation on the same income. And this will definitely be an issue for REITs as they are definitely required to distribute over 90% of their income in order to be income tax exempt.

People have been waiting for the last two years on the resolution by KRA on this...lets hope they do that soon.
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slimboss
#6 Posted : Tuesday, January 25, 2011 6:11:30 AM
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@cde are they affected by the current political situation in zim?
@scooby are there other ways of investing in real estate similar to or alternative to REITs in kenya? what is Bora capital offering? remember am trying to grow my savings before directly investing in realestate or do you know a better way for me to do that?
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drake
#7 Posted : Tuesday, January 25, 2011 8:04:24 AM
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Scooby wrote:

The are no REITs in Kenya at the moment....


Are you certain? See Kaplan Stratton "Deal-flow" as appears below...

"Africa Reit Limited - Real estate investment trust company
Set up of the first ever real estate investment trust company in Kenya under the Capital Markets (Real Estate Investment Trusts) Regulations, 2009. This transaction sets precedence in the real-estate/property development market."


@slimboss
If you want better quality answers for your question, you do need to give actual FIGURES/AMOUNTS or at least an indicative range ...

Sometime back, the same company Africa Reit Ltd was fund raising (via Co-op, I believe).

At the time, they were seeking to raise 1.2 Billion via the sale of 40K shares at 30K each and a minimum targeted return of 25% p.a and had promised to list on the NSE as an exit option.

Due diligence is on you.
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slimboss
#8 Posted : Tuesday, January 25, 2011 8:22:43 AM
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slimboss wrote:
hi wazuans,
my plan for this year is to accumulate money for investment in real estate starting with land purchase but instead of that cash just sitting I on? b the bank earning 0.00000....% interest I wanted to put in a real estate investment fund so as to grow my savings. could u please advice me as to whether this would be a good decision & some of the funds in kenya.


@ Drake my idea is to grow my savings instead of just leaving it in the bank so that I can eventually invest directly in real estate I.e buying land, building rental housing etc Coz as u know banks don't grow your savings. so I thought investing in reit would be a good start in that direction. is there a minimum amount required inorder invest in REITS? estimate
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tony stark
#9 Posted : Tuesday, January 25, 2011 8:47:50 AM
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Joined: 7/8/2008
Posts: 947
drake wrote:
Scooby wrote:

The are no REITs in Kenya at the moment....


Are you certain? See Kaplan Stratton "Deal-flow" as appears below...

"Africa Reit Limited - Real estate investment trust company
Set up of the first ever real estate investment trust company in Kenya under the Capital Markets (Real Estate Investment Trusts) Regulations, 2009. This transaction sets precedence in the real-estate/property development market."


@slimboss
If you want better quality answers for your question, you do need to give actual FIGURES/AMOUNTS or at least an indicative range ...

Sometime back, the same company Africa Reit Ltd was fund raising (via Co-op, I believe).

At the time, they were seeking to raise 1.2 Billion via the sale of 40K shares at 30K each and a minimum targeted return of 25% p.a and had promised to list on the NSE as an exit option.

Due diligence is on you.


You last sentence was spot on. Looking at the africa reit website you can tell it is clearly abandoned. News column only has 2009 news. When you google their project in a hope to see work plans, and progress there is nothing available. I think scooby is right their are no running reits in kenya!

@ slimboss i am in a similar boat as you. I currently divide my investments with 60% growing my share portfolio and 40 going into a HFCK cross over account. I decided to be patient and i know my money is just lying in a bank account. The advantage of having my money lying around at hfck is i get a record with the bank. Might help me when i want to access mortgage since i am on contract the bank needs some proof of my cashflow and saving habits.
I would appreciate any ideas!
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drake
#10 Posted : Tuesday, January 25, 2011 9:49:42 AM
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@slimboss
Estimates....refer to the figures I quoted earlier for guidance.

@tonystark
I'm confused.....What do you mean by "their are no running reits in kenya"? What qualifies as a "running reit"?

Africa REIT & sister company Hardy Projects appear under the "Members in Good Standing - 2010" list - as members of KPDA. Other members include but are not limited to Hass Consult, Centum, Equity Bank, East Africa Cables.....

http://www.kpda.or.ke/?itemId=14

As far as current projects go, you can view that here and here

See the power-point below to contrast their plans at the time they were fund-raising vs what appears on their website ...

http://www.scribd.com/doc/47512619/Africa-REIT

So they have missed some of their target completion dates - I have no data on how often this happens in the local industry so I'm unable to pass judgment....hence "due diligence".

*** Disclaimer: No, I am not affiliated with Africa REIT or Hardy Projects
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slimboss
#11 Posted : Tuesday, January 25, 2011 9:53:02 AM
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Bora capital has what they call PROPERTY FUNDS. which they say is invested in property, and returns are passed to investors through dividends accuring from rental. income and capital appreciation in value of the properties. please enlighten me is that the same as REITs?
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Cde Monomotapa
#12 Posted : Tuesday, January 25, 2011 11:18:09 AM
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Joined: 1/13/2011
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@Slim they r indeed affectd by the current situation in Zim which is purely a recovery/growth story.since they dollarisd the econ in 09 business has been recovering. Zim will recovr fastr than S.Sudan coz infrastructre is still intact n the human capital is well endowed.hail Cde Mugabe for taking his citizens to school! Was thre in Dec n 3/4 of wht we read in news is BS i can confirm. Check out www.africansuninvestor.com who are tenants of Dawn Properties. Afsun is a Pan African hotel group born in Zim. Did u knw that Pizza inn e.t.c is ownd by a Zim Co. Calld Innscor?!? It is listed on the ZSE too. Oppurtunities abound!
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slimboss
#13 Posted : Tuesday, January 25, 2011 8:24:00 PM
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@cde pliz send me your email address I need to know more by the way what's. the minimum investment required?
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Cde Monomotapa
#14 Posted : Tuesday, January 25, 2011 11:56:55 PM
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Slim drop me a line jamesnwanyama@gmail.com
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Cde Monomotapa
#15 Posted : Wednesday, January 26, 2011 12:06:23 AM
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Joined: 1/13/2011
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Also check out www.imara.co and www.kingdom.co.zw. They are reliable investment banks that u can engage and invest on the ZSE.
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