ILAM Fahari, the real estate investment trust (REIT) managed by ICEA Lion Asset Management, a firm associated with the prominent Kenyan Ndegwa family, continues to trade on the main investment market segment of the Nairobi Securities Exchange (NSE) as its delisting remains pending.
The Reit manager, ICEA Lion Asset Management, led by CEO Einstein Kihanda, has clarified that no specific date for delisting from NSE’s main bourse has been determined yet. The pending delisting is expected to offer ICEA greater flexibility in managing the Reit’s portfolio, enabling a more focused investment strategy aligned with the evolving needs of its unit holders.
ILAM Fahari I-Reit market update: Market capitalization at $7.5 million
On Wed., ILAM Fahari I-Reit saw a noticeable downturn in its trading performance on the Nairobi bourse, registering a turnover of Ksh27,090 ($171.7) with 4,300 units traded at Ksh6.30 ($0.040) each. This marks a considerable drop from its 54-week-high price of Ksh9.58 ($0.061) on Aug. 29, 2003. Presently, the Reit holds a market capitalization of Ksh1.18 billion ($7.5 million).
Last August, ICEA Lion Asset Management, controlled by the heirs of the late Kenyan banking magnate Philip Ndegwa, extended a buyout offer totaling Ksh402.4 million ($2.77 million) to acquire retail investors’ shares in ILAM Fahari I-Reit. The buyout aimed to streamline ownership by involving high-net-worth individuals and institutions, ensuring robust support for the fund’s expansion plans.
ICEA Lion Asset Management considers relisting on NSE, contingent on strategic plan success
In line with the buyout, ILAM Fahari I-Reit was slated for delisting on Dec. 4, 2023, following a restructuring exercise that elevated the threshold of unit holders to professional investors with a minimum investment of Ksh5 million ($32,000).
Unit holders cleared the Reit manager to take necessary actions for conversion and delisting, with units scheduled for listing on the unquoted securities platform. ICEA Lion Asset Management noted earlier that it would consider relisting on the NSE after three years, contingent on the successful implementation of its strategic plan.