Real Estate Investment Trusts (REITs) are regulated investment vehicles that enable collective investment in real estate. Investors pool their funds and invest in a trust that is divided into units, with the intention of earning profits or income from real estate, as beneficiaries of the trust.
As per the REIT regulations in Zimbabwe, the asset manager is mandated to pay out a minimum of 80% of the distributable income of the fund. However, the payout might exceed 80% as and when cashflow allows.
The asset manager will strive to provide forward guidance with regards to the payouts. Currently Tigere REIT will pay quarterly dividends to unitholders.
REITs have been total return investments. They historically have provided high dividends plus the potential for moderate, long-term capital appreciation. Additionally, REITs have offered liquidity, portfolio diversification and strong corporate governance
Terrace Africa Asset Management are the appointed REIT Manager responsible for the day-to-day investment management of the fund. Terrace Africa will also be responsible for the day-to-day Property, leasing and facilities management of the assets.
The overall strategy of the Fund is to generate income and capital growth through the acquisition of eligible and income generating real estate investments. These real estate investments will be used to generate a return for the Unitholders of the REIT Scheme. The target yield on NAV is 5-7% in USD.
Tigere REIT has entered into pre-emptive contracts on various new development assets within Zimbabwe. These assets include Phase 2 of Highland Park as well as the new Shopping centre at Zimbabwe Agricultural Showgrounds,