ICEA Lion Asset Managers (ILAM) Fahari I-REIT has been admitted to the Unquoted Securities Platform(USP) of the Nairobi Securities Exchange(NSE), following their delisting from the Main Investment Market in February 2024.
The REIT becomes the first to convert its status from unrestricted to restricted, undertake a redemption process, transition to USP in Kenya.ILAM Fahari joins Acorn I-REIT, Acorn D-REIT and the Linzi Sukuk in the USP, marking the first trading day in the segment at KSh 11.This comes after a resolution by unitholders of the REIT to restructure and delist and the subsequent approval by the Capital Markets Authority (CMA).“Your successful admission to the USP underscores your commitment to innovation and excellence in the real estate investment trust sector. This achievement not only enhances your visibility and credibility but also expands the range of investment opportunities available to Kenyan and international investors alike,” Wyckliffe Shamiah, CEO, Capital Markets Authority said.
The platform enables issuers to tap liquidity and raise private capital more easily with accurate price discovery which is key to recognizing the true valuation of their companies. Further, settlement delays and failures are avoided since funds are held by a custodian who confirms availability of funds before settlement is done.
“The transition from the Main Investment Market Segment of the NSE to the Unquoted Securities Platform is by no means a downgrade, but a strategic move aimed at ensuring unit holders value in the REIT is protected and the REIT is well positioned to take advantage of future growth opportunities.” Frank Mwiti, CEO, NSE said in the Wednesday brief.
The REIT had an oversubscribed redemption in October 2023 which saw the exit of small investors, who held units valued at less than Sh5 million. However, non professional investors will be bundled into a Nominee Account held at the Cooperative Bank Kenya. The REIT will consider relisting on the main market segment upon successful implementation in the USP.
ILAM has four properties in its portfolio including Greenspan Mall, 67 Gitanga Place, Bay Holdings and Highway House.
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