Two Rivers International Finance and Innovation Centre (TRIFIC) Special Economic Zone's Green United States Dollar Income Real Estate Investment Trust (USD I-REIT) has closed its public offer 103.3% oversubscribed, raising US$30.82 million (KSh 3.99 billion) ahead of a June 29 listing on the Nairobi Securities Exchange (NSE).
Applications received totalled US30,815,000 against a target of US29,832,000. Units were priced at US1.00 each. Investors who applied for up to US1 million were allotted in full, while larger orders were prorated based on available remaining units.
"The successful closure of the TRIFIC Green USD I-REIT offer, with an oversubscription of 103.3 per cent, is a strong endorsement of the quality of the underlying assets and the resilience of our business structure," said Chief Executive Officer Brenda Mbathi.
The REIT's seed asset is the North Tower, a 16,213-square-metre green-certified office building in Nairobi's Gigiri diplomatic district. Teleperformance, the world's largest business process outsourcing company, occupies 45% of the building's lettable area under a long-term, dollar-denominated lease.
Two Rivers Special Economic Zone, the offer's promoter and a subsidiary of NSE-listed Centum Investment Company, took up US7.46 million worth of units in exchange for transferring the North Tower into the trust. That contribution brings total units listing on the exchange to US37.29 million.
Kenya's existing real estate investment trusts have had a rough run since 2015. The Stanlib I-REIT and the ILAM Fahari I-REIT have traded thinly, hampered partly by high minimum investment thresholds that locked out smaller investors. TRIFIC's offer set a minimum subscription of US$1,000, opening the door to retail participation.
Mbathi confirmed that yield and rental support mechanisms detailed in the prospectus, alongside a market-making arrangement to support secondary trading liquidity, have been fully put in place ahead of listing.
Successful investors were notified on Thursday, with refunds to unsuccessful applicants processed Friday. Settlement is set for June 22, with units credited to investors' Central Depository System (CDS) accounts on June 26. Trading begins June 29 on the Main Investment Market Segment of the NSE.
KCB Investment Bank served as transaction advisor, lead arranger, and placement agent. NCBA Bank Kenya acted as trustee, with NABO Capital appointed as REIT manager. PwC handled reporting accountant duties, AIBAXYS served as co-sponsoring broker and market maker, and Axis Real Estate as property valuer.
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