Zimbabwe to Get First Dollar-Listed REIT as Property Gains Favor
Zimbabwe will get its first dollar-denominated real estate investment listing this week, as demand for property stocks grow.
Eagle REIT will list on Zimbabwe’s US dollar-denominated Victoria Falls Exchange on Friday and begin trading on May 19, according to a pre-listing statement from fund manager Fidelity Life Asset Management.
The southern African nation’s local currency bourse in Harare, the capital, has two REITs — Tigere Property Fund and Revitus.
Eagle REIT has raised $19.7 million in a private placement out of commitments of $24.5 million for projects in the resort city of Victoria Falls and Mazowe, the fund manager said.
Read More: Gold Gains and Currency Pains Fuel Property Boom in Zimbabwe
Institutional investors have been plowing into property stocks as a hedge against policy uncertainty, inflation and frequent currency crashes. Zimbabwe debuted the ZiG last year, its sixth attempt at a functioning local currency since 2009.
Funds under management invested in property increased to 47% in the final quarter of 2024 from 43.6% in the prior three months, according to the Securities and Exchange Commission of Zimbabwe, the industry regulator.
REITs are particularly attractive as they can be sold much faster than physical property, said Lloyd Mlotshwa, head of research at IH Securities. They also frequently pay dividends, letting investors earn income from property without owning or managing it directly.
The Tigere REIT, listed in 2022, whetted institutional investors’ appetite, Mlotshwa said. It will pay its 10th dividend to unit holders later this month. The asset class is also popular in other destinations. Dubai Residential REIT recently drew demand for all units on offer within minutes.
Read More: Dubai Holding’s $487 Million REIT Listing Sells Out in Minutes
In its first-quarter trading update, Tigere said, property remains the “favored option” for Zimbabwean investors seeking protection from currency shocks and foresees continued interest from individuals, corporates and pension funds looking for tangible exit options.
“Concerns of widespread price ‘overheating’ within the sector are overstated,” it said said, noting “pervasive supply-side gaps” in key subsegments such as warehousing, affordable housing, quality retail infrastructure and office space.-nbloomberg