Revitus IPO raises $48 billion

THE Revitus Property Opportunities Real Estate Investment Trust raised $48,6 billion through its initial public offering (IPO), fund administrator CBZ Asset Management has said.
The offer, which opened on November 15 and closed on December 14, was followed by the listing of the REIT on the Zimbabwe Stock Exchange (ZSE) this Monday.
Trading in units of the REIT commenced on Wednesday.

Speaking at the listing ceremony in Harare, ZSE board chairperson, Caroline Sandura said the market had witnessed an increased interest in REITs, adding that the ZSE had undertaken several initiatives to support the growth of the asset class and deepen the capital markets.
“We applaud the Finance minister, Mthuli Ncube and his team for supporting the growth of the exchange through the addition of new products,” Sandura said.
The minister said the government was motivated by a need to create alternative investments for pension funds that were “over-exposed” to real estate.
“They should use those properties to access liquidity from the capital markets and be in a position to pay member benefits timeously,” Ncube said.
“REITS play a very important role in improving the properties for the pension funds to improve the rental yield for the benefit of members,” the minister said.
Funds raised from the IPO will be used to revive several central business district properties held under the property portfolio of the National Railways of Zimbabwe Contribution Pension Fund, according to fund manager Brighton Mutingwende.
“There is an increased appetite among investors for this product, the reason being that it comes as a property, and therefore investors, even in small amounts, can be interested in that market.
“You also find that when you compare the property market with the stock market, it offers the advantage of constant dividends coming through from tenants,” Mutingwende said.
“We will be going with our first building, which is Chester House, beginning in January 2024.”
Securities and Exchange Commission of Zimbabwe chief executive, Anymore Taruvinga, said the Revitus had brought a new dimension to the local property market through the rejuvenation of stressed properties into competitive income-generating properties.
“If you look at just the amount of work needed on CBD buildings that are now deserted and dilapidated, we can all agree that the move by the NRZ National Railways of Zimbabwe Contribution Pension Fund is a noble initiative worth our collective support, as we can accelerate our achievement of the vision of 2030 through such projects,” he said.
“Through reconfiguration and changing the use of underutilised properties, not only do we salvage value, but we also revamp and modernise our cities.”
Under a multi-phased rehabilitation programme, the REIT is projected to generate more than US$6 million per year in rentals at comp