TSL lists N20bn real estate trust on NSE

The need to give all investors on the Nigerian bourse the opportunity to invest in largescale, diversified portfolios of income-producing real estate in the same way they typically invest in other asset classes received a boost as Top Services Limited (TSL), has offered for subscription 20 million units of its Real Estate Investment Trust (REIT) at N1,000 per unit worth N20 billion.

A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock. REITs provide investors with an extremely liquid stake in real estate. They receive special tax considerations and typically offer high dividend yields.

The offer, which is listed on the Nigeria Stock Exchange (NSE), involves four major malls; two in Lagos, one in Ibadan and another in Akure.

Speaking exclusively to Daily Trust, the managing director of First Ally Capital, the lead issuing house, Mr Ebenezer Olufowose, said: “This event is very significant in the sense that we need to begin to move beyond the simple instruments in the market. What we are introducing today is the real estates’ investment trust beyond the ordinary equity or bonds. We need to expand the instruments in our capital market and this is an opportunity to monetize the existing assets.”

The two (2) listed REITs have a total net asset value of N3.72bn (or $2.36bn), which is far below South Africa’s 43 REITs valued at $24bn - an indication of poor investors’ orientation/ awareness in the sector despite the huge potential in the real estate sector.