NAIROBI, Kenya, June 29 – The TRIFIC Green USD Income Real Estate Investment Trust (I-REIT) has listed on the Nairobi Securities Exchange (NSE) after its initial public offer raised $30.8 million (Sh4 billion), exceeding its $29.8 million (Sh3.9 billion) target.
The offer closed at 103.3 percent subscription, making it Kenya’s first US dollar-denominated green income Real Estate Investment Trust (REIT) to be listed on the local bourse.
The REIT is backed by the TRIFIC North Tower, a green-certified commercial office development located within the Two Rivers International Finance and Innovation Centre (TRIFIC) Special Economic Zone.
Funds raised through the offer will primarily be used to acquire the seed asset, with part of the proceeds earmarked for the development of a second commercial office tower within the special economic zone.
The trust targets an annual net dividend yield of 8 percent through semi-annual distributions and has committed to distribute at least 95 percent of its operating income to investors, above the minimum 80 percent distribution threshold required under Capital Markets Authority regulations.
The fund has also launched without debt, with future borrowing capped at 35 percent of total asset value unless unit holders approve a higher limit.
KCB Investment Bank, which acted as transaction adviser, lead arranger and placement agent, said the transaction reflects growing investor appetite for alternative investment products in Kenya’s capital markets.
NSE Chairman Kiprono Kittony said the oversubscription demonstrates continued investor interest in listed real estate investment vehicles despite prevailing economic uncertainties.
Future investments under the REIT are expected to include additional commercial properties such as logistics parks, light industrial developments and data centres as the fund expands its asset portfolio.
