Stanbic extends debut Reit sale by week after investors seek clarity

The sale of Stanlib Investments debut Real Estate Investment Trust (Reit) has been extended by one week after the issuer asked for more time in response to investor queries.

Stanlib’s Fahari Income-Reit whose sale was supposed to end Thursday will now end on November 18.

The investment firm said fund, pension managers and other institutional investors have asked for additional time to understand the new securities.

“Being the first in the market meant that we had to ensure that investors understand the attributes of this new investment vehicle in a short space of time.

“We have had multiple meetings with investors and have found the need to extend the offer period. The decision follows a number of requests from corporate investors to consult and prepare their applications for subscription,” said Stanlib Fahari Reit chief executive Anton Borkum in a statement.

Regional institutional investors have been allocated 55 per cent of the offer while foreign institutional investors will take up the remaining 20 per cent.

Individual investors will account for 25 per cent of the offer.

The Reit is targeting to raise as much as Sh12.5 billion which will go to rental properties.

The International Finance Corporation has said it will invest Sh1.5 billion in the offer.

The Reit will list on the Nairobi Securities Exchange on November 26.

SOURCE: BUSINESS DAILY