ICEA Lion Asset Managers (ILAM) Fahari I-REIT has transitioned to the Unquoted Securities Platform (USP) of the Nairobi Securities Exchange (NSE), following its delisting from the Main Investment Market in February 2024.
This REIT is the first to convert from unrestricted to restricted status, initiate a redemption process, and transition to USP in Kenya. ILAM Fahari now joins Acorn I-REIT, Acorn D-REIT, and Linzi Sukuk in the USP, with its first trading day starting at Kes 11.0. This move follows a resolution by the REIT’s unitholders to restructure and delist, which was subsequently approved by the Capital Markets Authority (CMA).
“Your successful admission to the USP underscores your commitment to innovation and excellence in the real estate investment trust sector. This achievement not only enhances your visibility and credibility but also expands the range of investment opportunities available to Kenyan and international investors alike,” stated Wyckliffe Shamiah, CEO of the Capital Markets Authority.
The USP allows issuers to access liquidity and raise private capital more efficiently, with accurate price discovery being crucial for recognizing the true value of their companies. Moreover, settlement delays and failures are minimized as funds are held by a custodian who confirms their availability before settlement.
“The transition from the Main Investment Market Segment of the NSE to the Unquoted Securities Platform is not a downgrade, but a strategic move aimed at protecting unitholder value and positioning the REIT for future growth opportunities,” said Frank Mwiti, CEO of the NSE, in a Wednesday briefing.
In October 2023, the REIT experienced an oversubscribed redemption, leading to the exit of small investors holding units valued at less than Kes 5.0 million. Non-professional investors will now be grouped into a Nominee Account held at Cooperative Bank Kenya. The REIT will consider relisting on the main market segment upon successful implementation in the USP.
ILAM’s portfolio includes four properties: Greenspan Mall, 67 Gitanga Place, Bay Holdings, and Highway House.
