Chapel Hill Denham Advisory Limited is seeking up to N20bn under its N100bn Issuance Programme, for investments in high quality, A-grade, income-producing commercial real estate assets to meet the country’s fast-growing population under its Nigeria Real Estate Investment Trust (NREIT).
This population growth, according to a statement by the fund manager, Chapel Hill Denham Management (CHDM), will come with a desire for office, retail, industrial, hospitality, student housing, and specialty assets sub-sectors, as well as residential (where there is a corporate underpin).
NREIT, a closed-ended unit trust scheme regulated by the Nigerian Securities & Exchange Commission (SEC), which also complies with the National Pension Commission (PENCOM) Investment Guidelines and SEC Rules on REITs, will be listed for trading on the Nigerian Stock Exchange (NSE).
The offer opens this month (September) and closes in October.
The fund manager, the statement continued, has identified over N120bn of tangible near-term pipeline assets that meet the fund’s mandate, from a broader investment universe of over N1tr, for which NREIT is a unique opportunity for investors to access real estate as an asset class in Nigeria.
NREIT, it continued, is different because it offers an investment opportunity that is in-line with global best practice, given its focus on commercial sectors with higher credit quality corporate tenants.
The fund plans to distribute over 90% of net income quarterly while offering income and capital growth through inflation-linked escalations; just as there are multiple capital raises in the vehicle to create scale and diversification that drive liquidity and value creation, among others.
The N20bn is being sought through an offer of 200m units of NREIT at N100 each, with a minimum subscription of N1.0m.