The TRIFIC Green USD Income Real Estate Investment Trust (I-REIT) has been listed on the Nairobi Securities Exchange (NSE) after its public offer raised $30.8 million (Sh4 billion), surpassing its target of $29.8 million (Sh3.9 billion) and achieving a subscription rate of 103.3 percent.
The listing marks the debut of Kenya’s first US dollar-denominated, green, income-distributing Real Estate Investment Trust (REIT), giving investors an opportunity to invest in income-generating commercial real estate through the capital markets.
The I-REIT is backed by the TRIFIC North Tower, a green-certified office building located within the Two Rivers International Finance and Innovation Centre (TRIFIC) Special Economic Zone.
TRIFIC Chief Executive Officer Brenda Mbathi said the successful listing would provide the capital needed to support the company’s next phase of expansion while allowing more investors to participate in the growth of the Two Rivers development.
“The successful establishment of the TRIFIC I-REIT is a very important step in that journey. It unlocks the capital we need for future development while providing investors with an important opportunity to participate in the growth of the Two Rivers ecosystem,” she said.
“We look forward to continuing to attract global investors, creating quality jobs and contributing meaningfully to Kenya’s economic transformation.”
The REIT targets an annual net dividend yield of 8 percent, with distributions to investors to be made twice a year. It has committed to distribute at least 95 percent of its operating income to unitholders, exceeding the Capital Markets Authority’s minimum requirement of 80 percent.
The fund has been launched without debt, with future borrowing capped at 35 percent of its total asset value unless approved by unitholders.
KCB Investment Bank, which served as the transaction adviser, lead arranger and placement agent, said the successful offer reflected growing investor appetite for locally structured investment products.
Chief Executive Maurice Opiyo said the listing demonstrated the increasing maturity of Kenya’s capital markets.
“Today’s listing demonstrates a growing maturity of our financial markets. When innovation is matched with robust governance, strong partnerships and disciplined execution, investors will always respond,” he said.
“Alternative investment products such as REITs will play an increasingly important role in mobilising long-term capital while allowing investors to diversify beyond traditional asset classes.”
NSE Chairman Kiprono Kittony said the oversubscription reflected growing investor confidence in Kenya’s capital markets.
“This oversubscription is more than a successful capital raise. It is a clear vote of confidence from investors,” he said.
“The listing represents another important step towards developing deeper, more diversified and internationally competitive capital markets in Kenya.”
The funds raised will primarily finance the acquisition of the seed asset, while additional capital will support the construction of a second commercial tower within the TRIFIC Special Economic Zone.
The REIT also plans to expand its portfolio in future through investments in logistics parks, light industrial parks and data centres.
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