Govt backs real estate sector
Rutendo Nyeve-Victoria Falls Bureau
Zimbabwe remains committed to supporting the real estate sector and the listing on the Victoria Falls Stock Exchange (VFEX) of Eagle Real Estate Investment Trust (REIT) shows the country’s preparedness to align with global trends in property securitisation and investment diversification, Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, has said.
He was speaking at Eagle Real Estate Investment Trust’s official listing ceremony in Victoria Falls last Friday.
It became the first REIT listing on the Victoria Falls Stock Exchange (VFEX), a development that is set to raise funds for its two anchor infrastructure development projects.
The move signifies a strategic shift towards leveraging offshore capital for local infrastructure development and is expected to amplify the Mazowe Walk and Victoria Falls Eagle Heights projects.
A REIT is a company that owns, operates, or finances income-producing real estate.
They pool funds from investors to build a portfolio of real estate, offering a way to invest in real estate without directly owning or managing properties.
In remarks, Prof Ncube said while Zimbabwe had previously witnessed the listing of other REITs on the Zimbabwe Stock Exchange (ZSE), the listing marks a historic first for the VFEX.
“It signifies a strategic shift towards leveraging offshore capital for local infrastructure development and sets a precedent for future REIT listings on the VFEX,” said Prof Ncube.
He said the listing of a REIT, an innovative asset class, is evidence of continued growth and deepening of capital markets and the maturing nature of the country’s financial sector.
“The listing is aligned with our drive to mobilise domestic and international resources towards infrastructure development and economic diversification,” said the minister.
“Furthermore, the listing signals Zimbabwe’s readiness to align with global trends in property securitisation and investment diversification.”
Prof Ncube commended the work being done by the Eagle REIT team in identifying high-impact real estate projects that promote the economy and the country at large.
ZHL (Eagle REIT parent company)’s board chairman Mr Desmond Matete said they have deliberately targeted the listing on VFEX to make an offering, which targets both local and international investor communities.
“The Eagle REIT is predominantly a hard currency, that is, US dollar fund, which is resource mobilising for select high-impact developments in Zimbabwe with capacity to confer competitive returns to reward investors for their participation at the same time contributing towards the critical infrastructure stock of this country.
“Even more profound is the fact that we are answering to the Government’s strategic thrust in designating the Victoria Falls as a Special Economic Zone for Tourism development, including offshore financial services,” he said.
“This policy pronouncement by the Government makes it easy for us as economic agents from the private sector to play our catalytic role towards attainment of the national vision for investment attraction into Victoria Falls,” said Mr Mutete.
ZSE group board chair, Mrs Caroline Sandura, said the listing of the Eagle REIT marks the 16th counter on VFEX.
“From a modest beginning, we have continued to build a robust, diversified, and forward-looking market. Each new listing is a vote of confidence, not just in our infrastructure and regulatory framework, but also in VFEX’s potential as a regional investment destination,” she said.
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