The Chief Executive Officer of Nairobi Securities Exchange (NSE), Geoffrey Odundo, while speaking during the officially trading launch of South Africa’s top investment managers, STANLIB Fahari I-REIT shares on the NSE, has recently urged the land Ministry to address challenges surrounding land ownership and issuance of Title Deeds in order to spur growth in the Real Estate Investment Trust (REIT) Market.
Odundo said uncertainties over land ownership and delays in issuance of Titles could stifle the growth of the REIT market that was launched in a bid to enable Kenyans invest affordably in the lucrative real estate segment. He noted that the exchange is embarking on public education on the market so that Kenyans can take advantage of the offers to come in the future.
“The launch of REITs further enhances financial inclusion in our capital markets as average investors will now be able to invest in large-scale commercial, residential and industrial properties, without requiring large sums of money. I urge other property owners and developers to follow in Stanlib’s footsteps, raising funds to finance their developmental projects through our capital markets,” said Odundo.
I-REIT which is envisioned to invest in properties across the real estate sector will include shopping malls, offices, warehousing and residential. Its initial public offer rose over Sh3.6 billion, a material Sh1 billion above the Sh2.6 threshold required for listing.
Seelan Gobalsamy, Chief Executive Officer STANLIB group said “As we expand across Africa, we aim to focus on alternative assets and transactions that make a real difference in regions where we operate. Our strategy has always been to identify gaps and present opportunities that help grow economies and further improve the business environment and facilitate trade. The STANLIB Fahari I-REIT is positioned to do exactly that”.
The company has footprints in 10 countries in Africa and manages over $46 billion in assets for both institutional and retail clients across Africa.