About the ILAM 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 ILAM 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 ILAM 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 ILAM 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.

Tax Transparency

The REIT is exempt from income tax. However, unit holders are subject to withholding tax on income they receive from the REIT at the applicable KRA tax rates.

Transparent investment vehicle

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

Accessibility

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

Liquidity

The ILAM Fahari I-REIT is listed on the Kenyan NSE therefore creating a secondary market for I-REIT units.

Returns

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

Regulatory Oversight

The ILAM Fahari I-REIT has been approved and is constantly being monitored by the Kenyan Capital Markets Authority (CMA).

Investable Universe

Of the Direct Property allocation, the I-REIT is permitted invest in various sectors including:

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