Centum gets REIT manager licence

A view of the Vipingo Ridge Golf Course that adjoins the Rea Vipingo sisal plantation in Kilifi. FILE 

By CHARLES MWANIKI

In Summary

• The Capital Markets Authority (CMA) announced issue of the new licences on Monday.

Centum Asset Managers and UAP Investments Limited have won the first two licences for real estate investment trust (REIT) managers, setting the stage for listing of building projects in the new year.

The Capital Markets Authority (CMA) announced issue of the new licences on Monday.

A REIT manager, according to CMA regulations, is a company licensed to provide real estate management services in to a real estate investment trust.

“These are the first two licences to be issued to market players under the new REIT segment and demonstrate a desire by the industry for expansion of the products and services that can be offered in the capital markets,” said acting CMA chief executive Paul Muthaura.

Both Centum and UAP Investments have indicated they intend to introduce REITs products in the market soon.

Centum announced last month that it would would convert its multi-billion shilling real estate project in Runda known as Two Rivers into a development REIT (D-REIT), to attract investors.

“We are in the process of converting Two Rivers into a Development REIT (D-REIT) and have secured funding interest of more than Sh14.45 billion in equity and long-term debt from local and international investors,” said Centum in an investor briefing for its half-year results released in November.

The company said that it intends to start the exit via sale or lease of the Two Rivers project from the second quarter of 2016.

UAP Investments chief investment officer Anthony Mwithiga told the Business Daily in September that the firm would list a REIT soon, although he did not specify a timeline.

REITs must be approved by the CMA. Issuing a REIT will also require the licensing of an independent REIT trustee, responsible under the Trust Deed for the safe custody of the assets of the REIT for the benefit of unit holders.