CMA approves Fahari I-REIT’s Ksh400M restructuring bid

Photo: NMG
Article: Business Daily

An asset management firm owned by the Philip Ndegwa family has made an offer to buy out retail investors in property fund ILAM Fahari I-Reit at Sh402.4 million or Sh11 per unit, representing a major premium to the trading price on the Nairobi Securities Exchange.

ICEA Lion Asset Management Limited, which manages Fahari, has offered to buy a total of 36.58 million units (shares) as part of a plan to delist the property fund.

The offer price represents an 83.3 percent premium to Fahari’s closing price of Sh6 on Monday. It, however, represents a 41.3 percent discount to the fund’s net asset value per unit of Sh18.75 as of June.

The partial buyout is designed to restrict the fund’s owners to high-net-worth individuals and institutions who can support it to scale up its operations, the Reit manager said.

“The Reit Regulations state that a restricted I-Reit can only have professional investors who meet a minimum threshold of Sh5 million and so the ICEA LION Asset Management Limited … as promoter will be funding the redemption of units from unitholders below that threshold,” reads part of communication sent to the press.

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