ILAM Fahari I-REIT will stop trading its securities at Nairobi Securities Exchange main segment effective February 12, 2024 after securing regulatory approvals from the Capital Markets Authority to delist from the markets.
The Real Estate Investment Trust (REIT) firm says the decision to delist from the Main Investment Market Segment (MIMS) of the NSE follows a resolution made by unitholders in November last year during a special general meeting in order to undergo proposed restructuring.
ILAM Chief Executive Officer, Einstein Kihanda, said IFIR is in the process of applying to have its securities admitted for trading over the counter on the Unquoted Securities Platform (USP) of the NSE.
“We welcome the approval by the Capital Markets Authority. This decision aligns with our commitment to enhancing value for our unitholders, ensuring a more agile and efficient operation and pursuing a more focused investment strategy that aligns with the evolving needs of our unitholders,” said Kihanda.
USP which is an automated platform by NSE allows unquoted firms to issue and trade securities and access the capital markets for long-term funding through private placements and restricted offers.
According to the firm, the delisting from the main segment and subsequent trading over the counter on the USP will provide greater flexibility in managing the REIT’s portfolio and will not affect the unitholders’ ability to trade their units, with Non-Professional investors bundled into a Nominee Account.
“Trading over the counter on the Unquoted Securities Platform will allow us to serve the long-term interests of our unitholders better and provide the unitholders with a high-quality investment experience whilst the REIT remains regulated by the Capital Markets Authority. We are thrilled to embark on this restructuring journey to fuel our growth and deliver exceptional returns to our unitholders,” added Raphael Mwito, ILAM Fahari I-REIT Chief Executive Officer.
The REIT will consider relisting on the NSE after 3 years upon successful implementation of the strategy.
During the three year period, the real estate investor says it will be seeking high-quality assets in prime locations with strong tenants and aims to double its portfolio value from Ksh 3.5 billion to Ksh 7 billion.
The restructuring is expected to create several benefits for unitholders, including increased flexibility to pursue a broader range of investment opportunities, including direct real estate acquisitions and developments, improved ability to align the REIT’s investment strategy with the long-term needs of its unitholders, and reduced costs and administrative burdens associated with being a listed REIT.
Ilam Fahari I-REIT was listed in November 2015 after it raised Ksh 3.6 billion.