A Zimbabwean pension fund has launched a real estate investment trust (REIT) which aims to raise $8mn through an initial public offer (IPO) that opened on November 16 and expected to close on December 7.

Owned by the National Railways of Zimbabwe Contributory Pension Fund (NRZCPF), Revitus REIT (Revitus) is set to list on the Zimbabwe Stock Exchange (ZSE) on December 15, becoming the second REIT to list on that bourse.

According to The Chronicle on November 16, Revitus will pick properties in the country’s central business districts, renovate and lease them at improved rates. It will begin with four commercial buildings in Harare, the capital city, and Bulawayo, the country’s second-largest city, before expanding the portfolio to other properties in the two centres and others across the southern African nation.

Speaking at the launch, NRZCPF chairperson Takunda Madanha said Revitus will boost the state and value of properties invested in as well as revenues to the pension fund. Ultimately the investment vehicle will benefit investors as well as pensioners at the NRZ, the country’s 130-year-old rail utility and one of the country’s biggest employers. 

ZSE chief executive officer Justine Bgoni told The Herald:

“The benefit of REITs, especially to pension funds, can never be overstated and has many benefits that our pension funds can take advantage of, including a tax-efficient structure. The exemption from income tax is a major attraction to potential investors, and that increases investment funds channeled towards REITs. Access to new investors and capital makes financing developments easier.”