Things you need to know about HMK REIT
What is REIT?
Reit is an acronym for Real Estate Investment Trust. It is a vehicle that invests in the ownership and management of a pool of real estate assets and mortgages, and packages them as tradable securities into which individual investors can subscribe.
WHAT IS HMK REIT?
HALDANE MCCALL REAL ESTATE INVESTMENT TRUST (HMK REIT) is a close ended real estate investment constituted under a Trust Deed. HMK REIT will invest in Commercial and Residential properties that are already generating rental income in prime areas in Nigeria. The HMK REIT will be managed by FSDH Asset Management Ltd, one of the leading Asset Managers in Nigeria.
WHAT IS THE OBJECTIVE OF THE HMK REIT?
The investment objective of the REIT is to provide Unit holders with regular and stable distributions, sustainable long-term growth in dividend payment and NAV per unit while maintaining an appropriate capital structure. It aims to achieve a long-term appreciation of its assets and maximize returns on capital employed.
WHY INVEST IN HMK REITS?
ü Investing in the REIT allows for diversification of your investment portfolio thereby reducing risks
ü There is access to first class properties in prime areas at discountedprices.
ü Rent from the Commercial properties which allow the Fund Manager concentrate on the management of the REIT.
ü There is diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period.Existing long term leases with tenants.
ü A Primary Market Maker will be appointed by The NigerianStock Exchange to ensure liquidity of the units by facilitatingcontinuous trading of the REIT on The NSE
ü Bank guarantee of part of the projected rental income
ü The REIT is managed by professionals with great care, topskill, prudence and diligence.
ü Access to the experience of professionals of diverse skills and in-depth knowledge in real estate investment and operationsthat make up the Investment Committee.
ü Stable and regular distribution of at least 90% of the net incomeaccruing from diversified portfolio of real estate and real estaterelated assets across residential and commercial properties andmoney market instruments.
ü Properties strategically located in the heart of Ikeja, GRA and Ikoyi Lagos.
ü 100% Committed Occupancy with high quality tenants.
HOW TO PURCHASE
Copies of the application Form can be obtained during the usual business hours on any week day (except public holidays) at the offices of Goldbanc Management Associates Ltd, BGL Capital Ltd, Capital Bancorp Plc,Greenwich Trust Ltd, Planet Capital Ltd, and LeadCapital Plc, your stockbroker or any of the Receiving Agents listed on pages 135-136 of the Prospectus or 61-62 of the Abridged Prospectus
ü HMK REIT is offering for subscription 2,600,000,000 units
ü OFFER PRICE: N5.15 per unit
ü MINIMUM SUBSCRIPTION: 10,000 units and multiples of 2,000 thereafter
ü OFFER SIZE:N13, 390,000,000 (Thirteen Billion Three Hundred and Ninety Million Naira Only)
ü PAYMENT TERMS: In full on application
ü DURATION: Offer Opens: December 1, 2014 and Closes January 9, 2015
ü PROCEEDS: The proceeds of the REIT will be applied as consideration for the purchase of the initial assets of the REIT from the Sponsor and the third party agents while the balance will be utilized in investment in other real estate, real estate related assets and money market instruments.
ü DISTRIBUTION: A minimum of 90% of the income earned in any financial year will be distributedto unit holders every financial year.
ü RATING: The N13.3b Haldane McCall Real Estate Investment Trust is assigned a ‘BBB’ ratingby Global Credit Rating Company Limited.
KEY PARTIES INVOLVED IN THE HMK REIT
- 1. FUND MANAGER: FSDH Asset Management Ltd
- FINANCIAL ADVISER /LEAD ISSUING HOUSE:
Goldbanc Management Associates Limited
- 3. CO-ISSUING HOUSES: BGL Plc
Capital Bancorp Plc
Greenwich Trust Ltd
Lead Capital Plc
Planet Capital Ltd
- 4. TRUSTEE TO THE FUND: SKYE Trustees Ltd
- 5. CUSTODIAN: UBA Plc (Global Investors Services Division)
- 6. SOLICITORS TO THE TRUSTEE: Austen–Peters & Co-Issueing Houses
Posted on December 22, 2014, in Business, economy, world and tagged about us, assets and mortgages, Capital Bancorp Plc, Goldbanc Management Associates Ltd, GRA and Ikoyi Lagos, Greenwich Trust Ltd, HALDANE MCCALL, HMK REIT, investors, Management, ownership, pool, Real Estate Investment Trust, rental income. Bookmark the permalink. Leave a comment.