Douglas Mwiti 
The Local Authorities Pension Trust (LAPTRUST) has listed the first Income- Real Estate Investment Trust (I-REIT) to be issued by a pension fund at the Nairobi Securities Exchange (NSE).
The LAPTRUST Imara I-REIT will list 346,231,413 units at Sh20 each, placing its valuation at Sh6.9 billion.
The I-REIT, a closed-ended fund, will be listed on the restricted sub-segment of the main investment market segment of the NSE.
As a closed-ended fund, persons wishing to invest in LAPTRUST Imara I-REIT shall effect such investments by purchasing the REIT Securities in the secondary market.
The listing of the LAPTRUST Imara I-REIT is set to provide investors with an opportunity to invest in a diversified portfolio of income-generating real estate assets.
This is also expected to spur growth in other pension schemes heavily invested in physical assets to unlock liquidity for the benefit of pensioners.
Speaking during the bell-ringing ceremony to mark the listing, President William Ruto commended CPF Financial Services for developing a product that aligns with the interests of investors and with the government’s transformational agenda in the capital markets.
“This kind of visionary problem solving, strategic imagination is needed to usher our capital markets and economy back to its traditional pioneering places,” said Ruto.
CPF Financial Services Group Managing Director, Hosea Kili noted that the REITs asset class provides investors with both capital growth and rental income which makes it an attractive investment for those looking for steady returns
“Pension funds have traditionally been reluctant to invest in real estate, but with the introduction of innovative asset instruments such as REITs, they can now access the huge potential of property-backed investments,” Kili said.
On his part the NSE Chairperson, Kiprono Kittony noted that the listing of the LAPTRUST Imara I-REIT is an important development for the NSE and the Kenyan capital markets.
“The listing of the LAPTRUST Imara I-REIT is a testament to the growing issuer confidence in our markets and the attractiveness of the Kenyan real estate sector as an investment destination,” Kiprono Kittony added.
The Capital Markets Authority(CMA)Chairman, Ugas Mohamed noted; “the upscaling of Real Estate Investment Trusts (REITs) as a capital markets product is quite timely as the product can unlock the potential of the real estate industry.”
