STANLIB Kenya to sell management rights of Stanlib Fahari I-REIT to ICEA Lion

Research . 4 years ago

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fusion capital

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STANLIB Kenya to sell management rights of Stanlib Fahari I-REIT to ICEA Lion

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STANLIB Kenya Limited (SKL) plans to dispose of its investment management mandates, rights, and obligations for STANLIB Fahari I-REIT to ICEA Lion Asset Management Limited (ILAM). However, ILAM will not assume any debts or liabilities of SKL in connection with or related to its REIT.  As stated in the announcement: “The assets being acquired by…


STANLIB Kenya Limited (SKL) plans to dispose of its investment management mandates, rights, and obligations for STANLIB Fahari I-REIT to ICEA Lion Asset Management Limited (ILAM). However, ILAM will not assume any debts or liabilities of SKL in connection with or related to its REIT. 

As stated in the announcement:

“The assets being acquired by ILAM include SKL’s investment management mandates and all rights, obligations and benefits of SKL in terms of, or in connection with, SKL’s role as Promoter and REIT Manager in relation to the REIT as set out in the REIT management agreement dated 1 October 2015 (as amended) and the trust deed of the REIT dated 30 September 2015 (as amended).

The implementation of the Agreement is subject to the fulfilment, by no later than 29 February 2020, of a number of conditions precedent set out in the Agreement which include, but are not limited to, the approval of the Competition Authority of Kenya, the Capital Markets Authority of Kenya and the Trustee.”

Meanwhile, SKL advises unitholders and the public to exercise due caution when dealing in the securities of the REIT until further announcements are made.

The Capital Markets Authority of Kenya has to grant a license to a REIT manager to enable any company operate a REIT. SKL is the current manager of STANLIB Fahari I-REIT but once this agreement is concluded, management rights of the REIT will be transferred to ILAM enabling them operate the REIT. STANLIB Kenya received its licence in October 2015. Others who have licences include Fusion Capital who was unsuccessful in floating its REIT in 2016 and Britam Holdings Plc.

STANLIB Fahari I-REIT is the first and only Kenyan REIT with 4 properties in its property portfolio namely Greenspan mall, Bay Holdings, Signature International and 67 Gitanga. Here is a breakdown of their property portfolio by sector:

STANLIB Kenya to sell management rights of Stanlib Fahari I-REIT to ICEA Lion

STANLIB Kenya to sell management rights of Stanlib Fahari I-REIT to ICEA Lion

Download the announcement on app.estateintel.com