THE Directors of the Fund Manager and Sponsor of Haldane McCall Real Estate Investment Trust (HMK REIT) have endorsed plans to conduct an Initial Public Offering (IPO) which opened on December 4th, 2014 and will close January 14th, 2015.
The decision was taken at the Completion Board Meeting of the HMK REIT held in Lagos. HMK REIT is offering 2,600,000,000 units of N5.15 each valued at N13.39 billion with a minimum purchase of 10,000 units and multiples of 2,000 thereafter to the investing public via an Initial Public Offering (IPO).
The proceeds of the offer will be used principally for the acquisition of a diverse portfolio of residential and commercial properties located in GRA Ikeja, Ikeja Central Business district and Ikoyi respectively.
According to a release made available, the HMK REIT will invest in a portfolio of high quality residential and commercial real estate properties that are already generating income, other potential high yield real estate assets and money market instruments.
The release explained that minimum of 90 per cent will be invested in Real Estate and Real Estate related assets while a maximum of 10 per cent will be in Liquid Asset Investment.
The firm explained further that investment objective of the REIT is to provide Unit holders with regular and stable income, sustainable long-term growth in dividend payment and Net Asset Value (NAV) per unit. It aims to achieve a long term appreciation of its assets and maximize returns on capital employed.
The statement read in part: “The fund manager shall seek to maintain a balance between realised income and capital growth to ensure regular income and continuous appreciation in asset values while ensuring optimal safety of assets and adequate liquidity to meet the Trust’s obligation as they fall due.
“A minimum of 90 percent of the income earned in any financial year will be distributed to unit holders every financial year.
An application has been made to the council of the Nigeria Stock Exchange for the admission to its daily official list of the units of the REIT. A Market Maker will also be appointed to ensure that units of the REIT are available for trading as at when required.
According to Olumayowa Ogunwemimo, Managing Director of FSDH Asset Management Ltd, the Fund Manager, the HMT REIT presents an opportunity to discerning investors to balance their investment portfolio and partake in stable and consistent stream of real estate income which a REIT provides as 90 per cent of income is distributed annually.
The Sponsor, Suru Worldwide Ventures Nigeria Limited, shall hold five per cent of the REIT while 95 per cent will be held by the investing public.
Upon completion of the offering, the HMK REIT will be managed by FSDH Asset Management Limited, one of the leading Asset Managers in Nigeria; other key parties are SKYE Trustees Ltd, Trustee to the REIT and UBA Plc, Custodian of the assets. The Issuing Houses are Goldbanc Management Associates Ltd (GMA), Lead issuing house and Co issuing houses namely BGL Capital, Capital Bancorp Plc, Greenwich Trust Ltd, LeadCapital Plc and Planet Capital Ltd.
FRENCH VERSION
