NAIROBI,Kenya May 26-The Two Rivers International Finance and Innovation Centre (TRIFIC) Special Economic Zone has launched a Sh4.8 billion ($37.3 million) green US dollar-denominated Income Real Estate Investment Trust (I-REIT), in a move aimed at financing commercial real estate expansion within its Nairobi-based special economic zone.
The offer, which opened on May 13 and closes on June 12, will fund the acquisition of the TRIFIC North Tower and support the development of additional environmentally sustainable commercial towers within the zone ahead of its planned listing on the Nairobi Securities Exchange.
The REIT is structured around the TRIFIC North Tower, an eight-floor commercial property located within the Two Rivers ecosystem, which the firm says currently hosts export-oriented businesses operating under the special economic zone framework.
TRIFIC Chief Executive Officer Brenda Mbathi said the dollar-based leasing model is designed to align rental income with tenant revenues, most of which are earned in foreign currency.
“This green U.S. dollar denominated REIT presents to the market an eight floor building that is currently domiciled at the two rivers ecosystem. We have placed, as privately owned, special economic zone, bespoke to private business services.”
“our tenants earn in U.S. dollars, and indeed, our rental, to them, is in U.S. dollars, and that allows us to bring this instrument to the narrow securities as a U.S. dollar denominated island.”
According to TRIFIC, the North Tower currently generates about $3.2 million in rental income annually and is 92 percent occupied by multinational firms, including technology companies, business process outsourcing firms and shared service centres serving international markets.
The REIT will be open to both retail and institutional investors, with the minimum investment set at Sh129,000, equivalent to $1,000.
TRIFIC says lease agreements signed with tenants include annual rental escalation clauses of 3.5 percent, which are expected to support steady income growth for investors over time.
The company added that proceeds from the REIT will be invested exclusively in green-certified commercial towers developed to international sustainability standards.
KCB Investment Bank is acting as transaction advisor, sponsoring broker and lead placing agent for the transaction.
Mbathi also disclosed that groundwork has already begun for a second commercial tower estimated to cost about $20 million, as demand for space within the zone continues to rise.
Located within Nairobi’s diplomatic blue zone, TRIFIC operates on 64 acres within the larger Two Rivers Development and has held a Special Economic Zone licence since June 2023.
The project has also been designated as a Project of Strategic National Importance under Kenya’s Vision 2030 development agenda, with a focus on attracting foreign direct investment and expanding globally traded services.
