The Nigerian Stock Exchange, last week, approved the application by Top Services Limited for an initial Public Offer for Top Services Limited Real Estate Investment Trust (TSL REIT). TSL REIT plans to raise ₦20bn by offering 20,000,000 units at ₦1,000.00 per unit, however no official statement from SEC has been released. They intend on running a retail focused REIT with the proposed assets including:
TSL REIT identified these malls and finds them favourable as they are anchored by Shoprite (Nigerian Retail Stores Limited), sub-anchored by FilmHouse Cinemas Limited and PEP Stores, over 55% of total gross lettable area is occupied by either anchor or sub-anchor tenants and all the malls have paid parking for at least 200 vehicles.
First Ally Capital Limited and Cardinal Stone Partners Limited are the issuing house/financial advisers for this IPO while FSDH Securities Limited will be the stockbrokers. If successful, the new REIT will join UPDC REIT (₦26.683bn), Skye Shelter Fund (₦2bn) and Union Homes REIT (₦11.306bn), the only REITs currently listed on the Nigerian Stock Exchange. In Q4:2014/Q1:2015, Haldane McCall Real Estate Investment Trust (HMK REIT) tried to list Nigeria’s 4th REIT through a ₦13.39bn IPO, however they were unsuccessful.
The retail market in Nigeria is facing severe challenges currently as USD denominated rents are increasingly difficult for tenants to pay and retailers are unable to replenish their imported stock.
View the NSE approval document here.
Download Offer Documents: