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UPDC’s REIT seeks N30b in capital market

By on February 24, 2013

The UACN Property Development Company  (UPDC) Plc’s Real Estate Investment Trust (REIT) seeks to raise N30 billion  in the capital market through the offer for subscription of three billion units of N10.00 each at par.

The offer which is sponsored by UPDC has FSDH Asset Management Limited and Stanbic IBTC Bank Plc as Fund Manager and Lead issuing House respectively, while First Trustees Nigeria Limited and UBA Trustees Limited are joint trustees to REIT.

Already, the application list for the offer opened on February 19, 2013 and will close on March 28, 2013.

According to the prospective, UPDC intends to hold 40 per cent of the REIT, while 60 per cent will be held by the public.

It said the cash being raised from the offer would be applied towards the purchase of real estate assets from UPDC.

The primary objective of the REIT is to provide unit holders with stable cash distributions from investments in a diversified portfolio of income-producing real estate properties and to improve and maximize unit value through the ongoing management of the REIT’s assets, future acquisitions and the development of additional income-producing real estate properties.

The document hinted that an application had been made to the Council of The Nigerian Stock Exchange for the admission of the 3,000,000,000 units of the UPDC REIT to its Daily Official List, adding that at the conclusion of the offer, the units of REIT would be traded on the floor of the Exchange.

 

[Daily Independent]

One Comment

  1. Ini

    February 24, 2013 at 1:15 pm

    What is the advantage of the REIT over UPDC issuing IPO or Rights?