Fusion Capital tests market with Sh2.3bn Reits offer

Riziki Kenya director Mary Kinoti, Lands and Housing Cabinet Secretary Jacob Kaimenyi and Fusion Group chief executive Luke Kinoti during the launch of the Development Real Estate Investment Trust (D-REIT) offer on June 23, 2016 in Nairobi. PHOTO | SALATON NJAU

Fusion Capital has opened the sale of its development real estate investment trust, commonly referred to as D-Reit, to the public at a price of Sh23 per unit.

Fusion aims to raise Sh2.3 billion through the sale of 100 million units in a sale that closes on July, 15.

The cash will be used to develop a mixed residential, office and retail project in Meru dubbed Greenwood City.

Investors will require a minimum Sh5 million to participate in the first development Reit to be issued in Kenya. The units will be listed at the Nairobi Securities Exchange on July 28.

“We are delighted to be the first to give other investors a chance to access development returns in Kenya by investing in property development through a D-Reit,” said Fusion Capital’s chief executive Luke Kinoti.

A Reit is a unit of ownership in a real estate project allowing retail investors to participate in the capital intensive sector which has reaped high returns in the last decade. READ: Fusion Capital pays financiers after Athi River homes sale

An artistic impression of the Meru Greenwood Park. PHOTO | COURTESY