Tigere Real Estate Investment Trust (REIT) is seeking approval from its unitholders to acquire Highland Park Phase 2 in Harare, Zimbabwe. A REIT is a type of investment that trades like a stock and owns and operates income-generating real estate properties. Tigere REIT has published a shareholders' circular outlining its plans, which are in line with the fund's overall strategy. The main goal is to provide returns to investors by generating income and achieving capital growth through the acquisition of suitable income-producing real estate.
The REIT's management and board of trustees have identified Highland Park Phase 2 as a suitable asset to add to the Tigere REIT portfolio. The inclusion of Highland Park Phase 2 is expected to increase the REIT's yield, offer better diversification across tenants, improve the REIT's net asset value growth and strengthen the existing Highland Park Phase 1 property.
Tigere REIT has so far made a final purchase offer of $351,282,000 to the current owner, Modern Touch Investments, subject to a 12-month USD-backed income guarantee. The seller is reported to have provided the REIT with existing lease agreements to support this transaction.
Highland Park is a premier shopping center in Harare, and the acquisition will allow Tigere REIT to own and control the full Highland Park Shopping Center complex.
The REIT's trustees believe this acquisition represents an opportunity to increase the returns generated for Tigere REIT's unitholders. The acquisition will result in Tigere REIT owning and controlling the full Highland Park Shopping Center complex.
This is expected to strengthen the overall property offering and potentially attract more tenants and customers, benefiting the REIT's performance.
