HF targets Reits to finance new projects


Mortgage lender Housing Finance will tap into Real Estate Investment Trusts to finance several its projects in the pipeline, it said yesterday.

The lender said its building arm, the Kenya Building Society, has lined up several developments and will use Reits to finance the projects where most appropriate.

The Reits Regulations 2013 have now been gazetted, setting the stage for creation of Reits schemes and listing at the Nairobi Securities Exchange for trading.

“Reits will help access the capital markets and boost liquidity for larger projects. They will reduce the financing costs by enabling to raise more equity and rely less on debt, which can be expensive as shown by the high interest rates recently,” said managing director Frank Ireri.

The regulations cater for development Reits (D-reits) and income Reits (I-Reits). Reits are known to have strong dividend yields for investors and capital gains on their assets.

Reit schemes will be exempt from corporate tax while investors will be exempt from withholding tax as long as the schemes distribute at least 80 per cent of their annual profits as dividends.

HF will tap into Reits directly as a promoter through its building arm or play other roles in Reits schemes such as trustee, Reit manager and project manager certifier.

NSSF packages its buildings for listing at Nairobi exchange

The NSSF is packaging its commercial property into a real estate investment vehicle with an aim of listing at the Nairobi Securities Exchange.

The retirement workers’ fund, National Social Security Fund (NSSF), has identified Bruce House and the NSSF complex block A, B, C plus the parking silo, all in Nairobi, and the Social Security House in Mombasa for offering to the public.

NSSF has the option of listing an investment REITs, commonly referred to as i-REIT, which allows the holders to share in rental yields of the listed property.

I-Reits facilitate introduction of property worth at least Sh300 million into the securities exchange through sale of a stake to the public.

As at June 2010, Bruce House was valued at Sh1.5 billion, Social Security House in Mombasa at Sh550 million and the NSSF complex as a whole Sh5.4 billion.

Home Afrika sets Sh2bn target in first REIT issue


Home Afrika expects to raise up to Sh2 billion through a real estate investment trust (REIT) to fund infrastructure construction at its Migaa Project in Kiambu County, making it the first company to seek to raise capital from the stock market for a housing development.

The Migaa project, which could become the first beneficiary of the newly introduced REITs regulations, comprises of 4,000 homes, hotels, schools, a hospital, offices, an 18-hole golf course, a commercial centre spread on 774 acres.

Idiot reporting, aarrrgggghhhh!
1. CMA Quarterly bulletin compiled in October and distributed 06 November 2013
2. Bulletin has no mention of a "notice"
3. The news part is misleading
4. The ONE and ONLY mention of REITS in the bulletin reads: (CMA bulletin, Page 10)

and now we have Stanlib kenya limited,Fusion investment management limited and CIC Asset management Limited in addition to
Centum Asset management limited and UAP investents limted

http://www.capitalfm.co....-managers-get-licences/