About the STANLIB Fahari I-REIT

An Income-REIT is a real estate investment scheme which owns and manages income generating real estate for the benefit of its investors. Distributions to investors are underpinned by commercial leases. This means that income returns are predictable and generally less volatile. The I-REIT provides an instrument for investing in the real estate market which offers both liquidity and a stable income stream.

The STANLIB Fahari I-REIT is closed-ended and its units are listed on the Nairobi Securities Exchange. Consequently, the market price of the Units is market driven and may not necessarily be equal to the Net Asset Value of the STANLIB Fahari I-REIT. However, the I-REIT Scheme may undertake secondary offers as and when the need arises. Prospective investors should note that there is currently no active secondary market for a REIT in Kenya.

Objective
The STANLIB Fahari I-REIT aims to provide consistent income and capital growth in the long-term. Our active management approach targets quality physical properties within carefully chosen economically growing nodes.

Diversification
Property is not correlated with other asset classes. Investing in property may improve a portfolio’s risk return profile.

No Taxes
The income earned through the income REIT is tax free!

Transparent investment vehicle
Investors are able to understand exactly what you’re invested in. From the actual assets, costs and returns.

Accessibility
An I-REIT can more easily be bough or sold. Investors do not have to deal with the complexity of selling a physical property.

Liquidity
The STANLIB Fahari I-REIT will be listed on the Kenyan NSE therefore creating a secondary market for I-REIT shares.

Returns
The STANLIB Fahari I-REIT will benefit from underlying properties’ Capital Gains and Rental Income. Giving investors exposure to a consistent return profile in the long-term.

Regulatory Oversight
The STANLIB Fahari I-REIT has been approved and will be monitored by the Kenyan Capital Markets Authority (CMA).

Investable Universe
Of the Direct Property allocation, the I-REIT will invest as per the permitted sectors including:

  • Mixed-use developments
  • Retail (shopping centres)
  • Commercial (offices)
  • Industrial (warehousing and logistics)
  • Hospitality (i.e. hotels and resorts)
  • Residential
  • Specialized buildings (student accommodation)
  • Schools
  • Manufacturing facilities
  • Hospitals