A new mall at the Zimbabwe Agriculture Showgrounds and a hotel are among new projects that property developer Terrace Africa plans to add to the portfolio of Tigere Property Fund, which has become the first property fund to list on the stock exchange.
The Tigere Real Investment Trust (REIT) started trading Thursday after an IPO that was 95.42% subscribed. It is the first IPO since GetBucks listed in 2016. A REIT allows a company to pool investor funds into real estate investments. Investors buy units in the trust and share profits from the investments.
Tigere currently holds two properties, Highland Park Shopping Mall and Chinamano Corner, both built by Terrace Africa. The company says it is developing new properties to add to the Tigere portfolio. These include a mall at the showgrounds in Harare, and a hotel and conference centre elsewhere.
“These include projects such as an international hotel, a brand-new state-of-the-art conference centre and an integrated office park,” says Brett Abrahamse, MD of Terrace Africa Asset Management, the Tigere Fund Manager. “An exciting project for 2023 will be a new mall at the Showgrounds with our partners ZAS (Zimbabwe Agricultural Society).”
The company has received interest from new investors willing to take part in new property investments worth up to US$100 million, Abrahamse says.
“Most importantly, throughout the process of the REIT formation, we have been receiving words of encouragement and engaging with international investors who have committed up to US$100million to partner with us in making these projects a success. The regulated REIT structure provides liquidity and transparency for these funds to flow,” he added.