ILAM Fahari I-REIT unitholders give thumbs up to delisting
Unitholders of ILAM Fahari Real Estate Investment Trust have approved the proposed operational restructuring and the delisting of the REIT from the main investment market segment of the Nairobi Securities Exchange (NSE).
The unitholders approved all the resolutions recommended by the REIT Manager and approved by the Trustee during an Extraordinary General Meeting (EGM) held on Friday November 24th. “The unitholders have reaffirmed their commitment to the Management to pursue the growth and expansion plan. This decision paves the way for strategic acquisitions and a solid financing strategy,” said ILAM CEO Einstein Kihanda.
“Our focus now shifts entirely to growth. We seek high-quality assets in prime locations with strong tenants, aiming to double our portfolio value from Kshs. 3.5billion to Kshs. 7 billion within the next three to four years,” said ILAM Fahari I-REIT CEO Raphael Mwito.
The adopted resolutions included the approval of converting ILAM Fahari I-REIT from an unrestricted to a restricted I-REIT (93.09 percent), the delisting of the REIT from the NSE (92.95 percent), the quoting of the REIT units on the Unquoted Securities Platform (USP) managed by NSE (92.95 percent), and the authorization of ICEA LION Asset Management (ILAM) and the Co-operative Bank of Kenya as the Manager and Trustee of ILAM Fahari I-REIT to undertake all necessary actions for the conversion and delisting (92.97 percent).
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Increased flexibility
Delisting from the NSE will offer increased flexibility in managing the REIT’s portfolio. It will not impact the ability of unitholders to trade their units, with Non-Professional investors bundled into a Nominee Account. The REIT plans to reassess relisting on the NSE after three years, contingent on the successful implementation of the strategy.
Lydia Rono, the Chairperson of the Board of Trustees from the Corporate Trustee Services at The Co-operative Bank of Kenya Limited, expressed the intention to expand the REIT with expectations of achieving double-digit growth.
“We’ve been empowered to scale up our operations, to foster innovation, and unlock new horizons of success,” Ms Rono noted.
The restructuring is expected to yield various advantages for unitholders. These include enhanced flexibility to explore a wider array of investment opportunities, such as direct real estate acquisitions and developments, and an improved ability to align the REIT’s investment strategy with the long-term needs of its unitholders.
The REIT will officially submit an application to the Capital Markets Authority and the NSE for delisting from the Main Investment Market Segment.
