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    Africa REIT

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    draknoirrd
    (1) A REIT is a company that owns, manages and develops real estate properties and uses the income generated to invest in other real estate assets. (2) Africa REIT Ltd is a Kenyan REIT that invests in commercial and residential properties in Kenya and East Africa. Its current portfolio includes office buildings, apartments, and planned housing developments. (3) Africa REIT is raising funds through an equity offering to finance its existing projects and acquire new properties.

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    Africa REIT

    Uploaded by

    draknoirrd
    327 views28 pages
    (1) A REIT is a company that owns, manages and develops real estate properties and uses the income generated to invest in other real estate assets. (2) Africa REIT Ltd is a Kenyan REIT that invests in commercial and residential properties in Kenya and East Africa. Its current portfolio includes office buildings, apartments, and planned housing developments. (3) Africa REIT is raising funds through an equity offering to finance its existing projects and acquire new properties.

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    Africa REIT "info memorandum"

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    (1) A REIT is a company that owns, manages and develops real estate properties and uses the income generated to invest in other real estate assets. (2) Africa REIT Ltd is a Kenyan REIT that invests in commercial and residential properties in Kenya and East Africa. Its current portfolio includes office buildings, apartments, and planned housing developments. (3) Africa REIT is raising funds through an equity offering to finance its existing projects and acquire new properties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    327 views28 pages

    Africa REIT

    Uploaded by

    draknoirrd
    (1) A REIT is a company that owns, manages and develops real estate properties and uses the income generated to invest in other real estate assets. (2) Africa REIT Ltd is a Kenyan REIT that invests in commercial and residential properties in Kenya and East Africa. Its current portfolio includes office buildings, apartments, and planned housing developments. (3) Africa REIT is raising funds through an equity offering to finance its existing projects and acquire new properties.

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 28

    1

    REAL ESTATE INVESTMENT TRUST


    (REIT)
    A REIT is set up as a company that owns,
    manages and develops real properties with
    which it and its management have
    developed successful experience

    REITS invest in different kinds of real estate


    or real estate related assets, including
    shopping centers, office buildings, hotels,
    and mortgages secured by real estate

    2
    Types….
    Equity REITS
     invest in or own real estate and make money for
    investors from the rents they collect

    Mortgage REITS
     which lend money to owners and developers or invest in
    financial instruments secured by mortgages on real
    estate; and

    Hybrid REITS
     which are a combination of equity and mortgage REITS

    Africa REIT Limited


    OBLIGATIONS OF REITS
    As stated by the Capital Markets Act,

     A real estate management company is


    responsible for managing the funds or properties
    of the scheme on behalf of the unit holders

     To comply with such guidelines, directives,


    circulars and instructions as may be issued by
    the Authority on the subject of real estate
    investment schemes
    Africa REIT Limited
    INVESTMENT LIMITATION
     The scheme shall only invest in real estate

     The real estate shall generally be income


    generating

    Africa REIT Limited


    CMA DIVIDEND POLICY

    The scheme shall distribute to unit


    holders as dividends each year
    an amount not less than 90% of
    its annual net income after tax

    Africa REIT Limited


    WHY INVEST IN PROPERTY IN KENYA?
    Kenya is an attractive destination for real estate
    developments because of the positive economic growth

    Serious scarcity of accommodation particularly in the


    low-cost housing segment

    Real-estate provides attractive returns in this region as


    compared with almost all other investment opportunities

    Africa REIT Limited


    RISK FACTORS:-
    The Business Risks
     Property Prices
     Borrowing risks
     Rental defaults

    Country Risks
     Political stability

    Offer Risks
     Lock in period of approximately 24 months within
    which the shares of the company will not be
    transferable – Africa Reit Ltd
    Africa REIT Limited
    9
    BUSINESS OVERVIEW
    Africa REIT Ltd is a private real estate investment company that
    provides equity funding for commercial and residential property in
    Africa

    Africa REIT Limited was formed to:

     Provide investors with a portfolio of real estate investments in


    selected properties in Kenya and the East-African region at large

     Provide equity funding for commercial and residential property in


    Africa

    • Develop property, acquire, own and manage commercial and


    residential sectors

    Africa REIT is associated with Hardy Projects Ltd

    Africa REIT Limited


    ABOUT US : –
    • Our Vision
    To be an engine of economic growth in the
    African continent through real-estate
    development

    • Our Mission
    Consistently provide quality commercial and
    residential property to our customers, delivered by
    a team of professionals, while creating investment
    value to our shareholders

    Africa REIT Limited


    REASONS FOR THE OFFER
    1. Great potential in Real Estate Sector in
    Kenya

    2. Opportunity for the prospective investors


    to diversify their investment portfolio

    3. Expand the Company’s shareholder’s


    base
    Africa REIT Limited
    INVESTMENT STRATEGY
    The company has identified for investment:

    a) Properties with a high potential for attractive


    capital gains
    b) Properties with a high potential for attractive
    rental incomes
    c) Shares in companies that have invested in
    properties with features described in (a) and (b)
    above and a strong balance sheet

    Africa REIT Limited


    OUR PORTFOLIO
    COMMERCIAL PROPERTY
    1. Project Hardy House - Commercial Office
    Development : –
    – Location: Upper hill, Nairobi
    – Develop - To Let
    – Size: 64,560 Ft2 building
    – Features: Commercial building, 11 floors including 3
    levels parking & banking hall
    – Vicinity of the World Bank, Coca Cola, Embassies
    etc
    – Building commencement date – Feb 2009
    – Targeted completion date – Q2 2010
    Africa REIT Limited
    HARDY HOUSE – ELGON ROAD
    UPPER HILL

    Africa REIT Limited


    2. Project Hardy EPZ - Technology
    Park Development :–
     Location: Athi River, Kenya
     Develop - To Let
     Features: 300,000 Ft2 technology fitted
    offices, 10 block development each covering
    an estimated 30,000 Ft2 including conference
    facilities and a multi-facility sports centre, on
    25 acres (Phase I)
     10 year Tax holiday
     Building commencement date – Q3 2009
     Targeted completion date – Q1 2011
    Africa REIT Limited
    Project Hardy EPZ - Athi River:-

    Africa REIT Limited


    3. Hardy West-End CBD - Commercial
    Development Project : –
     Location: Nairobi CBD
     Renovate to Let
     Vision: Renovate a specific area within the CBD
    into up-market commercial & entertainment
    centre
     Location: CBD, neighboring 5-star hotels, several
    theatres and restaurants
     Status: In negotiation to purchase first old
    building
     Expected renovation commencement: 2011
    Africa REIT Limited
    Hardy West End – Nairobi CBD

    19
    Residential Property
     1. Wood Avenue Apartments : –
     Location: Kilimani, Nairobi
     Develop - For Sale
     Size: 46,400 Ft2
     Features: 24 apartments; 2 & 3 bedrooms -
    For sale
     Located close to large shopping mall - Yaya
    Centre
     Building commencement date – April 2009
     Targeted completion date – Q1 2010
    Africa REIT Limited
    1. Wood Avenue Apartments –
    Kilimani, Nairobi

    21
    2. Dennis Pritt Apartments –
    Kilimani, Nairobi
     Location: Kilimani, Nairobi
     Develop - For Sale
     Size: 25,000 Ft2
     Features: 20 apartments; 2 bedrooms - For
    sale
     Located close to State House, Kilimani Police
    station and several Embassies
     Building commencement date – Q2 2009
     Targeted completion date – Q1 2010

    Africa REIT Limited


    Dennis Pritt – Kilimani, Nairobi

    23
    3. Athi River Housing Development : –
     Location: Athi River, Kenya
     Develop - For Sale
     Features: 400 Housing units and commercial
    centre on 50 acres
     Located close to Athi River Export Processing
    Zone (EPZ) and Daystar University
     Status: Land acquisition negotiation
     Expected commencement: Jan 2010

    Africa REIT Limited


    Athi River Housing Project

    25
    PROJECT VALUATION SUMMARY
    PROJECT TOTAL PROJECT EQUITY ESTIMATED
    COST (KSHS) REQUIRED (40% COMPLETED
    OF COST) VALUE ( KSHS)

    Wood Avenue 198,544,000 - 269,500,000


    Apartments
    Dennis Pritt 113,520,000 - 184,000,000
    Apartments
    Hardy House Ltd 369,606,320 147,842,528 1,000,000,000

    Hardy EPZ Ltd 1,155,000,000 462,000,000 2,000,000,000


    Athi River Housing 870,000,000 348,000,000 1,600,000,000

    Hardy West End 641,310,000 256,524,000 1,500,000,000

    TOTAL(kshs) 3,035,916,320 1,214,366,528 6,553,500,000


    USD Equiv $ 37,500,000 $ 15,000,000 $82,000,000

    Africa REIT Limited


    PRICE PER SHARE
    COMPANY AFRICA REIT LIMITED

    TOTAL EQUITY REQUIRED* 1,200,000,000/=

    TOTAL NUMBER OF SHARES 100,000

    EQUITY AVAILABLE FOR SALE 40%

    NUMBER OF SHARES FOR SALE 40,000

    PRICE PER SHARE TO NEW 30,000/=


    SHAREHOLDERS
    * TOTAL EQUITY ROUNDED OFF

    27
    FOR MORE DETAILS PLEASE CONTACT:

    AFRICA REIT LIMITED,


    Upper hill, Elgon road,
    P.O. Box 15397 – 00509 ,Nairobi, Kenya
    T: +254-(20)-2710320 / 2724350 / 0770-166566
    F: +254–20-2724788
    E: [email protected]
    W: www.africareit.co.ke

    Africa REIT Limited

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