TRIFIC USD I-REIT Closes Oversubscribed Ahead of June 29 NSE Listing

The TRIFIC Green USD I-REIT closed its offer at 103.3% subscription, after investors applied for about $30.8 million against a target of $29.8 million. The promoter, Two Rivers Special Economic Zone, also took up $7.46 million worth of units after transferring the TRIFIC North Tower to the trust as the seed asset. That brings the total units expected to list on the Nairobi Securities Exchange on June 29 to about $37.29 million.

Beyond the numbers, the stronger signal is what the offer says about investor appetite. Kenyan investors are increasingly looking beyond shilling based products, especially where an investment offers regular income and diversification through foreign currency exposure.

The REIT is anchored by the TRIFIC North Tower, a green certified office development within the Two Rivers Special Economic Zone. The building is already 90% occupied, with international service firms among its tenants. That gives the fund a rental income base from which it can target an estimated annual return of about 8%, supported by long term leases and rent escalation clauses.

The dividend rules also make the structure attractive. As an income REIT, the fund must pay out at least 80% of its net earnings to investors as dividends to qualify for exemption from corporate income tax. This allows more of the income generated by the underlying property to flow through to investors instead of being reduced at the company level.

The $1,000 minimum subscription also lowered the entry barrier, allowing more retail investors to access a dollar denominated real estate product where it would have been impossible. But with wider participation, liquidity becomes important. Centum has previously pointed to a Sh517.8 million liquidity facility designed to act as a market maker, supporting small ticket exits when investors want to sell but cannot immediately find buyers.