NEW REAL ESTATE TRUST TARGETS SHOPPING MALLS

Yesterday, February 16 #Top Services ltd offered to the public 20m investment units valued at N1000 each in its Real Estate Investment Trust (TSL REIT) to the public through the #Nigerian stock exchange with eyes fixed on shopping malls profits.

The intention, says the Managing Director of #First Ally Asset Management ltd, who are the fund managers, Mr Winston Osuchukwu, is to raise N20bn to acquire for starters four already well established shopping malls in Nigeria and more of such in the future.

For the #REIT there will be no question of developing from scratch but consistent investment in existing shopping malls with not less than 75% occupancy; not less than 8,000 sqm of gross lettable space and with at least one nationally recognised anchor tenant with long term lease.

Using these criteria, the new REIT immediately has eyes on Adeniran Ogunsanya mall in Surulere, Lagos; Apapa mall also in Lagos; Cocoa mall, Dugbe Ibadan, Oyo state and Akure mall, Akure in Ondo state.

According to offer prospectus, all of them have solid anchor tenants, have minimum of 82% occupancy rate, and above 8000sq letting area each. The anchor tenants by December 2016 were mainly #Shoprite, #FilmHouse and #PEP stores with rent payable fixed in dollars but payable in Naira.

The sponsor of the REIT is Top Services ltd founded in 1996 by acknowledged architect, Chief Tokunbo Omisore which presently owns the aforementioned malls and will retain 30% interest in the trust fund after the ownership transfer.

TSL REIT Investment decisions shall be taken by an investment committee comprising 2 people from the fund managers; and one each from ARM Trustees as trustees to the offer;  Top services ltd and the pension operators association of Nigeria.

A seat has also been reserved in the committee for an independent expert who, presently, is a lady from the United States Ms Melissa Cook with very relevant experience and link.

The offer closes March 10 and in the event of over subscription, 15% of the excess will also be taken by TSL REIT subject to official rules.

On the other hand, in the event of undersubscription the REIT first purchase the Adeniran Ogunsanya and Cocoal malls before going for the Akure and later the Apapa mall.

The hope is to distribute minimum of net income annually to unit holders with, adds Winston Osuchukwu, the high chance of first dividend within its first year given earnings potentials in solid occupancy rate and rent denominated in dollars but payable in Naira.

Other professionals to the offer include #First Ally Capital ltd as lead issuer; #Cowry Asset Management; #Future View Financial Services and #Greenwich Trust as joint issuing houses; Udo Udoma (solicitors) #Stanbic IBTC (custodian bank); Pedabo audit services (reporting accountants) and the registrar, #United Securities Ltd.

Stockbrokers to the issue and market maker is #FSDH Stockbrokers ltd.


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