ILAM Fahari I-REIT (Income Real Estate Investment Trust) has transitioned to the Nairobi Securities Exchange (NSE) newest platform, the Unquoted Securities Platform (USP), marking the end of a two-year journey.

This move represents a major milestone for ILAM Fahari I-REIT and its unit holders, following regulatory approval to delist from the Main Investment Market Segment (MIMS) of the NSE and shift to the USP.

The transition is expected to offer greater flexibility in managing the real estate portfolio, unlock growth potential, reduce costs, and attract new investments.

Trading on the USP will allow ILAM Fahari I-REIT to seek high-quality assets in prime locations with strong tenants, aiming to double its portfolio value from Sh3.5 billion to Sh7 billion within the next three years.

ILAM chief executive Einstein Kihanda said that the move will breathe new life into the business and aligns with its growth ambitions.

Positive returns

“This listing is meant to deliver positive returns for our investors. It also provides existing unit holders with an exclusive opportunity to conveniently and efficiently trade their units on the USP platform with the help of the nominated participating agents, providing the much-needed liquidity,” Kihanda said.

ILAM Fahari I-REIT is Kenya’s first Real Estate Investment Trust (REIT), providing investors with steady income and capital growth. The fund invests at least 75 per cent of its Total Asset Value (TAV) in real estate in strategic locations in Kenya.

An Income-REIT is a real estate investment scheme that manages and owns income-generating real estate for its investors, supported by commercial leases, which means that returns on income are predictable and generally less volatile.

Close ended

With ILAM Fahari I-REIT, a maximum of 25 per cent of its TAV is invested in cash investments and cash-like instruments. It is also closed-ended, and I-REIT’s investment in the direct property allocation includes mixed-use developments, retail shopping centres, commercial offices, industrial warehouses and logistic operations, hospitality, residential buildings, schools, manufacturing facilities, and hospitals.

The history of ILAM Fahari I-REIT dates back 35 years, making it the oldest fund management company in Kenya. It was first known as Stanlib Fahari Income-REIT.

The NSE expects to list five more companies on the USP following a commitment by the president to revitalize Kenya’s capital market through a structured, time-sensitive diversity and prioritization program of stakeholder enterprises. “This diversity will enable Kenyans from all walks of life to participate in offerings, providing an avenue for the distribution of the nation’s wealth,” Kihanda added.

He expressed confidence that the market will continue to show strong performance this year, driven by anticipated strategic economic reforms in response to current national challenges.

The NSE expects to list five more companies on the USP following a commitment by the president to revitalize Kenya’s capital market through a structured, time-sensitive diversity and prioritization program of stakeholder enterprises.