ILAM Fahari IREIT Set for Delisting from Nairobi Securities Exchange

NAIROBI, Kenya — ILAM Fahari Real Estate Investment Trust (IREIT) has officially received approval from regulatory authorities to delist from the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange (NSE), with the process set to be finalized by Monday, February 12, 2024. The announcement follows a decision by the trust’s unitholders to restructure and delist, a move that was subsequently approved by the Capital Markets Authority (CMA).

According to Kenya News Agency, Mr. Einstein Kihanda, the last trading day on the NSE will be Friday, February 9, 2024.

The push for delisting was ratified during a special Extraordinary General Meeting (EGM) held by the unitholders on November 24, 2023, where all resolutions proposed by the management and approved by the Board of Trustees were accepted. Kihanda disclosed that ILAM Fahari IREIT is pursuing admission for its securities to be traded over the counter on the Unquoted Securities Platform (USP) of the NSE, aiming to enhance operational efficiency and align the investment strategy more closely with the evolving needs of its unitholders.

“This decision aligns with our commitment to enhancing value for our unitholders, ensuring a more agile and efficient operation and pursuing a more focused investment strategy that aligns with the evolving needs of our unitholders,” Kihanda stated, expressing optimism about the approval by the Capital Markets Authority. The shift to over-the-counter trading on the USP is designed to provide greater flexibility in managing the REIT’s portfolio without impacting the unitholders’ ability to trade their units. Non-Professional investors will be grouped into a Nominee Account to facilitate this transition.

Moreover, ILAM Fahari I-REIT’s Chief Executive Officer, Raphael Mwito, highlighted the benefits of this restructuring, including the possibility of relisting on the NSE after three years, contingent upon the successful implementation of their strategy. “Trading over the counter on the USP will allow us to serve the long-term interests of our unitholders better and provide the unitholders with a high-quality investment experience whilst the REIT remains regulated by the Capital Markets Authority,” Mwito explained.

As part of its growth strategy, ILAM aims to double its portfolio value from Sh. 3.5 billion to Sh. 7 billion within the next three years by seeking high-quality assets in prime locations with strong tenants. The restructuring is anticipated to offer several advantages to unitholders, such as increased investment flexibility, alignment of investment strategies with long-term needs, and reduced costs and administrative burdens of being a listed entity.