Tigere Real Estate Investment Trust (REIT) is seeking unitholder approval for the acquisition of Highland Park Phase 2.
A REIT is a security that trades like a stock on the major exchanges and owns—and in most cases operates—income-producing real estate or related assets.
Tigere this week issued a shareholders circular detailing its intentions which it said were in line with the Fund’s broader strategy.
“The REIT’s key objective is to provide a return by generating income and achieving capital growth through the acquisition of eligible income-generating real estate investments. In line with the strategy shared with
“Investors, the Manager and Trustee have identified Highland Park Phase 2 as a suitable asset for inclusion into the Tigere REIT,” the company said.
The inclusion of Highland Park Phase 2 into the REIT is expected inter alia to, provide a yield accretive impact on the REIT, offer strong counterparty lease diversification, improve the NAV growth of the Tigere REIT and strengthen the offering at the existing Phase 1 of Highland Park.
“Pursuant to the above, and as a culmination of the Cautionary Statements published by the REIT from 26th March 2024 to 22nd July 2024, the Tigere REIT manager and its advisory board have made a final purchase offer of 351,282,000 units to Modern Touch Investments (Private) Limited, the Developer and owner of Highland Park Phase 2, provided that a 12-month USD-backed income guarantee is agreed by the parties.
“The Seller has provided the fund with standing lease agreements to this effect,” the REIT said in a statement.
Highland Park is a premier shopping centre located in Highlands, Harare. The Tigere REIT currently owns Highland Park Phase 1.
Highland Park Phase 2 is adjoined to Highland Park Phase 1 and the proposed Transaction will result in the Tigere REIT owning and controlling the full extent of the Highland Park Shopping Centre.
The REIT Manager and Trustee have thus seen this as an opportunity to increase the yield generated by the REIT, thereby adding value to Unitholders. — NewZimbabwe
