The Nigerian Stock Exchange (NSE) has published proposed changes to the framework regarding the trading of Real Estate Investment Trusts (REITs); and Closed End Funds listed on The Exchange. While there are still many other issues that need to be resolved including liquidity, we await to see the impact these proposed changes will have to the Nigerian REIT market.
The proposed changes, which will be implemented over the next three (3) quarters of 2017 are aimed at promoting transparency, disclosure, visibility and liquidity of listed REITs and Closed End Funds in our market. The changes will also make it easier for existing and potential investors to access information required to make investment decisions thereby contributing to the growth of these products in our market.
The proposed changes are as follows:
The prescribed submission format will be communicated to the Issuers/Fund Managers in due course.
Further to the proposed changes above, The Exchange is planning to host the first REITs Workshop before the end of the second quarter of 2017, to further engage with the relevant stakeholders within the market, on the proposed developments.
Fund Managers to the REITs and Closed End Funds are encouraged to embark on consistent marketing campaign on the developments, and provide detailed information to sensitize and educate investors about this asset class, as a viable alternative investment vehicle.
The Exchange looks forward to partnering with its esteemed issuers, investors and other stakeholders, on its course towards delivering service excellence, and a first rate capital market experience that will cement its position as “Africa’s foremost securities exchange”.