All you need to know about HMK REIT

What is REIT?

Reit is an acronym for Real Estate Investment Trust. It is a vehicle that invests in the ownership and management of a pool of real estate assets and mortgages, and packages them as tradable securities into which individual investors can subscribe. Continue...

WHAT IS HMK REIT?

HALDANE MCCALL REAL ESTATE INVESTMENT TRUST (HMK REIT) is a close ended real estate investment constituted under a Trust Deed. HMK REIT will invest in Commercial and Residential properties that are already generating rental income in prime areas in Nigeria. The HMK REIT will be managed by FSDH Asset Management Ltd, one of the leading Asset Managers in Nigeria.

WHAT IS THE OBJECTIVE OF THE HMK REIT?

The investment objective of the REIT is to provide Unit holders with regular and stable distributions, sustainable long-term growth in dividend payment and NAV per unit while maintaining an appropriate capital structure. It aims to achieve a long-term appreciation of its assets and maximize returns on capital employed.  

WHY INVEST IN HMK REITS?

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Investing in the REIT allows for diversification of your investment portfolio thereby reducing risks

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There is access to first class properties in prime areas at discounted prices.

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Rent from the Commercial properties which allow the Fund Manager concentrate on the management of the REIT.

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There is diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period. Existing long term leases with tenants.

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A Primary Market Maker will be appointed by The Nigerian Stock Exchange to ensure liquidity of the units by facilitating continuous trading of the REIT on The NSE

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Bank guarantee of part of the projected rental income

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The REIT is managed by professionals with great care, top skill, prudence and diligence.

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Access to the experience of professionals of diverse skills and in-depth knowledge in real estate investment and operations that make up the Investment Committee.

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Stable and regular distribution of at least 90% of the net income accruing from diversified portfolio of real estate and real estate related assets across residential and commercial properties and money market instruments.

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Properties strategically located in the heart of Ikeja, GRA and Ikoyi Lagos.

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100% Committed Occupancy with high quality tenants.

HOW TO PURCHASE

HOW TO PURCHASE

Copies of the application Form can be obtained during the usual business hours on any week day (except public holidays) at the offices of Goldbanc Management Associates Ltd, BGL Capital Ltd, Capital Bancorp Plc, Greenwich Trust Ltd, Planet Capital Ltd, and Lead Capital Plc, your stockbroker or any of the Receiving Agents listed on pages 135-136 of the Prospectus or 61-62 of the Abridged Prospectus or downloaded from www.hmkreit.com  and submitted to any of the issuing houses listed above.

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HMK REIT is offering for subscription 2,600,000,000 units

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OFFER PRICE: N5.15 per unit

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MINIMUM SUBSCRIPTION: 10,000 units and multiples of 2,000 thereafter

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OFFER SIZE: N13, 390,000,000 (Thirteen Billion Three Hundred and Ninety Million Naira Only)

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PAYMENT TERMS: In full on application

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DURATION:  Offer Opens: December 04, 2014 and Closes January 14, 2015

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PROCEEDS: The proceeds of the REIT will be applied as consideration for the purchase of the initial assets of the REIT from the Sponsor and the third party agents while the balance will be utilized in investment in other real estate, real estate related assets and money market instruments.

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DISTRIBUTION: A minimum of 90% of the income earned in any financial year will be distributed to unit holders every financial year.

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RATING: The N13.3b Haldane McCall Real Estate Investment Trust is assigned a ‘BBB’ rating by Global Credit Rating Company Limited.

KEY PARTIES INVOLVED IN THE HMK REIT

1. FUND MANAGER: FSDH Asset Management Ltd

2. FINANCIAL ADVISER /LEAD ISSUING HOUSE:Goldbanc Management Associates Limited

3. CO-ISSUING HOUSES: BGL Plc

                                           Capital Bancorp Plc

                                           Greenwich Trust Ltd

                                           Lead Capital Plc

                                           Planet Capital Ltd

4. TRUSTEE TO THE FUND: SKYE Trustees Ltd

5. CUSTODIAN: UBA Plc (Global Investors Services Division)

6. SOLICITORS TO THE TRUSTEE: Austen–Peters & Co