Top Services Limited Floats N20bn REIT

Top Services Limited (TSL), one of Nigeria’s leading property development company has floated a N20billion Real Estate Investment Trust (REIT).

The close-ended TSL REIT offer, consisting of 20 million units for subscription at N1, 000 per unit and opened February 1, 2017, will have First Ally Capital as its lead issuing house and First Ally Asset Management as its fund manager.

According to a statement, having identified the need for well-located and affordable retail/mall spaces to help catalyse the growth of local retailers, TSL said it committed itself to building and delivering “neighbourhood” malls that are affordable yet of high quality to attract anchor tenants.

To date, the firm said it had developed four malls -Adeniran Ogunsanya Mall, Surulere; Apapa Mall, Apapa; Cocoa Mall, Dugbe, Ibadan, Oyo State; and Akure Mall, Akure, Ondo State, all of which are currently operational and have occupancy rates of over 80 per cent.

Speaking on the offer, Chairman, TSL, Chief Tokunbo Omisore, said initial investments by the REIT would focus on retail-related real estate including the highlighted four malls owned by TSL. Promising stable and regular income distribution to investors in the REIT, Omisore disclosed that the malls can boast of diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period.

He listed the strengths of the TSL REIT to include predictable cash flow, multiple anchor tenants at each location with long term leases, rental payments agreements that are indexed to the Naira:US$ rate, zero leverage of assets at inception, while Investors will not take on development, construction or financing risk. In addition, the malls have high average occupancy rate as all the malls are at or above 80 per cent occupancy levels.

According to the Managing Director of First Ally Asset Management, Fund Manager for the TSL REIT,Mr. Winston Osuchukwu, “investing in the Top Services Limited Real Estate Investment Trust allows for diversification of investment portfolio thereby reducing portfolio risks. Let me assure investors that the REIT will be managed by professionals with great care, top skill, prudence and diligence. For instance, the Investment Committee consists of professionals of diverse skills and in depth knowledge in real estate investment and operations. In addition, the REIT is transparently structured and backed by reputable organizations including ARM Trustees Limited, Stanbic IBTC Bank Plc and Leadway Assurance Plc.”