VFEX registers first REIT listing
THE Eagle Real Estate Investment Trust (REIT) has become the first REIT listing on the Victoria Falls Stock Exchange (VFEX), a development that is set to raise funds for its two anchor infrastructure development projects.
The move signifies a strategic shift towards leveraging offshore capital for local infrastructure development and is expected to amplify the Mazowe Walk and Victoria Falls Eagle Heights projects.
Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, presided over the brief listing ceremony held in Victoria Falls on Friday.
In his remarks, Minister Ncube said while Zimbabwe has previously witnessed the listing of other REITs on the Zimbabwe Stock Exchange (ZSE), the listing marks a historic first for the VFEX.
“It signifies a strategic shift towards leveraging offshore capital for local infrastructure development and sets a precedent for future REIT listings on the VFEX,” said Prof Ncube.
He said the listing of a REIT, an innovative asset class, is evidence of continued growth and deepening of capital markets and the maturing nature of the country’s financial sector.
“The listing is aligned with our drive to mobilise domestic and international resources towards infrastructure development and economic diversification,” said Minister Ncube.
“Furthermore, the listing signals Zimbabwe’s readiness to align with global trends in property securitisation and investment diversification.”
Prof Ncube commended the work being done by the Eagle REIT team in identifying high-impact real estate projects that promote the economy and the country at large.
These range from tourism infrastructure in Victoria Falls to retail, residential and healthcare facilities development across the country.
“Let me also advise that Government remains committed to supporting the Real Estate sector.
“Stakeholders such as local authorities, regulators, pension funds, banks and development financiers are urged to fully support the sector for long-term benefits and the economy at large.”
Prof Ncube highlighted that the Treasury’s collaboration with VFEX has borne fruit and continues to play a critical role in attracting hard currency investments and diversifying the capital markets offering.
“Through the operationalisation of the IFC, VFEX is poised to be the ideal financial hub that attracts domestic and international capital for investment, enhancing the growth of our economy,” he said.
ZHL (Eagle REIT parent company)’s board chairman Mr. Desmond Matete said they have deliberately targeted the listing on VFEX to make an offering, which targets both local and international investor communities.
“The Eagle REIT is predominantly a hard currency, that is, US dollar fund, which is resource mobilising for select high-impact developments in Zimbabwe with capacity to confer competitive returns to reward investors for their participation at the same time contributing towards the critical infrastructure stock of this country.
“Even more profound is the fact that we are answering to Government’s strategic thrust in designating the Victoria Falls as a Special Economic Zone for Tourism development, including offshore financial services,” he said.
“This policy pronouncement by Government makes it easy for us as economic agents from the private sector to play our catalytic role towards attainment of the national vision for investment attraction into Victoria Falls,” said Mr. Mutete.
He said through the REIT, they are pooling and crowding in other investors to develop the high impact projects required for the zone.
ZSE group board chair, Mrs. Caroline Sandura, said the listing of the Eagle REIT marks the 16th counter on VFEX.
“From a modest beginning, we have continued to build a robust, diversified, and forward-looking market. Each new listing is a vote of confidence, not just in our infrastructure and regulatory framework, but also in VFEX’s potential as a regional investment destination,” she said.
The listing of the Eagle REIT ushers in a new era of investment within the economy using different models and channels of investment which allow for inclusive and broad-based participation in sustainable development for the country.-herald
