Chapel Hill Denham Nigeria Real Estate Investment Trust Series I Offer of Up to N20.3bn Now Open

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Monday, August 31, 2020 10:14 AM /by Chapel Hill Denham/ Header Image Credit:  Nigeria Real Estate, Property Forum


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Chapel Hill Denham Advisory Limited is pleased to notify you of the investment opportunity in the Nigeria Real Estate Investment Trust ("NREIT" or "the Fund") Series I Offer of up to N20.25 billion. NREIT is a fully Shariah compliant fund (with Shariah certification) that has Lotus Financial Services Limited as Shariah Adviser. The proceeds from the Series I Offer will be applied towards investments in high quality, Shariah compliant, A-grade, income producing commercial real estate assets in Nigeria; across office, retail, industrial, student housing and specialty assets sub-sectors. The Fund is targeting a consistent annual return of 20%+ in Naira, including a 10% annual cash distribution (which will be paid through quarterly distributions).

 

NREIT offers a unique opportunity for a broad range of investors to access real estate as an asset class in Nigeria. The Fund Manager, Chapel Hill Denham Management (CHDM) has identified over N120 billion of tangible near-term pipeline real estate assets that meet the Fund's mandate, from a broader investment universe of more than N1 trillion. This Offer is issued under a N100 billion Issuance Programme that has been duly registered with the Securities and Exchange Commission.

 

Chapel Hill Denham has set out to differentiate NREIT by offering an investment opportunity in line with global best practice, with the following factors underpinning the NREIT investment case:


  • The only fully Shariah certified REIT in Nigeria
  • Focus on commercial sectors with higher credit quality corporate tenants
  • Distribution of over 90% of net income quarterly
  • Income and capital growth through inflation-linked escalations
  • Listed on the NSE from inception
  • An attractive current market entry point for new entrants with no legacy issues
  • An experienced Fund Manager with domestic and international track record
  • Strong and transparent governance: independent Trustee, Custodian and property valuers
  • Management fee based on the market value of the Fund (not on accounting NAV)
  • Alignment of the interest of the Fund Manager with investors through CHDM also investing 5% of Series I

 

Please find below the indicative terms of the Offer:        

                                    

Entity

Nigeria Real Estate Investment Trust

Fund Manager

Chapel Hill Denham Management Limited

Structure

Authorized and registered in Nigeria as a Real Estate Investment Trust

Close-ended Unit Trust regulated by the Securities & Exchange Commission

Compliant with PENCOM Investment Guidelines and SEC Rules on REITs

Shariah Compliant

To be listed on The Nigerian Stock Exchange

The Programme

N100 billion under which the Units will be issued from time to time

Series

I

Offer Size

up to N20.25 billion

Offer Price

N101.25 per unit

Offer Units

200,000,000 units

Minimum Subscription

10,000 units

Offer Open Date

Wednesday, August 5, 2020

Offer Close Date

Monday, September 14, 2020

Fees and Expenses

Management Fee: 1.5% per annum of the market value of the Fund

 

Underlisted documents in respect of the offer:

1. NREIT Supplementary Prospectus

2. NREIT Investor Presentation

3. NREIT Offer Application Form

4. Eligible Individual Investors (EIIs) Form (for individual investors)

5. CHDM Ratings Report


 

 Proshare Nigeria Pvt. Ltd.


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