Rangoon REIT

OVERVIEW OF REIT

Rangoon REIT is a premier real estate investment trust (REIT) offering investors access to a portfolio of high-quality commercial, residential, and mixed-use properties in Ghana’s prime business district. Strategically located, our assets provide stable returns, long-term capital appreciation, and exposure to Ghana’s growing real estate sector.

 

Frequently Asked Questions (FAQs) Prospective Investors

 

  1. What is Rangoon Real Estate Investment PLC (REIT)?

Rangoon Real Estate Investment PLC is a closed-ended real estate investment trust established to invest directly and indirectly in a portfolio of income-generating real estate assets primarily used for commercial purposes. It aims to provide shareholders with stable currency-protected income distributions and long-term growth in the net asset value of properties.

 

  1. Who can invest in the REIT?

The offer is open to all Ghanaians and non-Ghanaian individuals and corporate entities, who meet certain qualifications. Qualified applicants include institutional investors, professionally advised private investors, financially sophisticated non-advised private investors, High-net-worth individuals, pension funds, private funds, collective investment schemes, and development finance institutions.

 

  1. What are the properties included in the REIT’s portfolio?

The initial portfolio includes:

  • Portman House Ltd: Housing Huawei Technologies.
  • Infinity Tower Ltd: Home to PwC Ghana.

These properties in particular are part of the prestigious Cantonments City development in Accra and have a combined valuation of USD 37.8m.

 

  1. What is the minimum investment required?

The minimum investment is 300 shares, priced at the Ghana Cedi equivalent of USD 1,000.00 per share. Additional investments must be made in multiples of 100 shares. The total equity stake being offered is 200,000 ordinary shares issued in Tranches.

 

  1. How can I apply for shares in the REIT?

Applications can be submitted electronically through the IC Asset Managers portal (ic.africa) or via hard copy. Payments are accepted through bank transfers.

 

  1. What is the dividend policy of the REIT?

The REIT intends to pay semi-annual dividends (on June 30 and December 31) equaling at least 90% of its net income, subject to market conditions and regulatory guidelines.

 

  1. Are there risks associated with investing in the REIT?

Yes, potential risks include:

  • Dependency on asset performance for returns.
  • Subordination to borrowing obligations.
  • Fluctuations in property market conditions.

 

  1. How are these risks being mitigated?

The REIT Manager (IC Asset Managers) intend to mitigate risks through various strategies and technique including but not limited to:

  • Long-term leases with anchor tenants to ensure stable occupancy and income.
  • Dollar-indexed rental incomes to guard against currency depreciation.
  • Tenant mix optimization and property enhancements to maintain competitiveness.

 

  1. What are the fees and expenses involved?

Annual fees include:

  • REIT Manager Fees: 0.60% of the Net Asset Value (NAV).
  • Custody Fees: Not exceeding 0.21% of NAV.
  • Directors’ Remuneration: Determined periodically by shareholders.

Total annual expenses are capped at 1% of NAV.

 

  1. Can I redeem or trade my shares?

Shares are transferable over-the-counter (OTC) through the Manager before the planned listing on the Ghana Stock Exchange (GSE) within three years. After listing, shares will be traded under GSE rules.

 

  1. What tax benefits does the REIT offer?

The REIT’s income is tax-exempt under current regulations, providing a tax-efficient investment avenue.

 

  1. Who manages the REIT?

IC Asset Managers (Ghana) Ltd acts as the REIT Manager, overseeing investment management, administration, and shareholder services. Standard Chartered Bank (Ghana) PLC serves as the Custodian.

Denton Property Managers is the appointed property manager for the real assets.

Assenta Property Consulting is the independent property valuer

 

  1. When does the initial offer period begin and end?

The offer starts on March 3, 2025, at 10:00 am and ends on March 21, 2025, at 5:00 pm. Adjustments to this timeline will be communicated by the Manager with regulatory approval.

 

  1. How will proceeds from the share offering be used?

Proceeds will be utilized to acquire 40% of the combined value of Portman House and Infinity Tower, as the sponsor transfers its stake in these properties to the REIT.

 

  1. What are the REIT’s objectives and perks?

Investing in Rangoon offers investors the opportunity to receive regular and stable currency-protected distributions, maintain an appropriate capital structure that balances growth and manage risk effectively. These factors combine to create a reliable and profitable investment option.

 

  1. Where can I find more information about the REIT?

For additional details, please visit the Manager’s website at www.ic.africa or refer to the prospectus approved by the Securities and Exchange Commission.