ILAM Fahari I-REIT listed on NSE Unquoted Securities Platform

ILAM Fahari Real Estate Investment Trust has been admitted to the Unquoted Securities Platform (USP) of the Nairobi Securities Exchange (NSE) following a comprehensive restructuring of the REIT.

In February, ILAM received regulatory approval from the Capital Markets Authority (CMA) to delist the REIT from the Main Investment Market Segment (MIMS) of the NSE. This restructuring process involved converting from an unrestricted to a restricted I-REIT.

The firm believes delisting from MIMS and trading over the counter on the USP will provide greater flexibility in managing the REIT’s portfolio and will not affect the unitholders’ ability to trade their units, with Non-Professional investors (investors whose unit value are less than Kshs 5 million) bundled into a Nominee Account.

Speaking during the bell-ringing event to commemorate the REIT’s admission to the USP, ILAM CEO Einstein Kihanda said the move will enable the company to unlock the REIT’s full growth potential, reduce costs, attract new investment, and acquire additional properties to reach a sustainable asset base size.

“We are upbeat about the potential of the REIT following its listing at the USP. This move provides us with increased flexibility and potential for growth. The new structure aligns with ILAM Fahari’s strategic vision to optimise its investments and provide investors with innovative avenues to diversify their portfolio,” Kihanda said.

The decision to convert and restructure stems from the ILAM Fahari I-REIT’s comprehensive strategic review in 2021, which sought to understand the challenges the I-REIT faced and develop potential strategies to improve the returns and market performance.

“The unquoted securities platform plays a crucial role in our capital markets ecosystem by providing a gateway for innovative financial instruments. It promotes inclusivity, allowing a diverse range of issuers to access capital and enabling investors to participate in emerging sectors of our economy. ILAM Fahari I-REIT’s presence on this platform exemplifies the platform’s role in fostering growth and unlocking value in Kenya’s real estate market,” Capital Markets Authority Chief Executive Officer Wycliffe Shamiah said.

Capital Markets Authority Chief Executive Officer Wycliffe Shamiah

NSE Chief Executive Officer Frank Mwiti said: “The admission is also a strategic move aimed at ensuring that the REIT is well positioned to take advantage of future growth opportunities.” 

The restructuring is expected to create several benefits for unitholders, including increased flexibility to pursue a broader range of investment opportunities.

Nairobi Security Exchange, Chief Executive Officer, Frank Mwiti

“There is a need to create opportunities for Africa’s growing youthful population to earn money, and the Unquoted Securities Platform provides a viable option for our youth to invest in,” FSD Africa Director, Capital Markets Development Dr.  Evans Osano said.

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