Tigere Property Fund (Tigere REIT) has convened an Extraordinary General Meeting (EGM) to seek unitholder approval for the acquisition of three income-generating properties, a transaction aimed at significantly strengthening the fund’s asset base and enhancing long-term returns. The proposed acquisition includes Design Quarter in Highlands, Cardinals Corner along the ED Mnangagwa and Harare Drive corridor, and Kadoma Retail Phase 1, with the total transaction valued at approximately US$57.7 million.
To finance the acquisition, the REIT intends to issue more than 1.73 billion new units, which will represent about 48.1% of the enlarged unit capital following completion of the transaction. The issuance price implies a premium to the fund’s latest net asset value (NAV) per unit, reflecting management’s confidence in the quality and earnings potential of the assets being acquired.
The proposed properties are expected to substantially increase Tigere REIT’s investment portfolio. Design Quarter is a modern mixed-use development anchored by businesses in the design, décor and lifestyle sectors, while Cardinals Corner is a well-established retail centre serving some of Harare’s most affluent suburbs and housing prominent tenants across retail, dining and automotive segments. Kadoma Retail Phase 1 provides exposure to a growing regional market supported by mining, agriculture and increasing commercial activity.
According to the fund, the acquisitions are expected to improve distributable income, strengthen the quality of rental earnings and diversify income streams. Forecasts indicate that distributable income per unit could rise by approximately 1.5%, while the enlarged portfolio is expected to almost double annual distributable income. The transaction is also projected to increase the fund’s NAV per unit and improve operating efficiency through economies of scale.
Management believes the acquisitions will enhance income stability due to the strategic locations of the assets, strong tenant demand and favourable rental growth prospects. The inclusion of the Kadoma asset also provides an opportunity to benefit from increased consumer spending linked to mining activity in the region, particularly within the small-scale gold sector.
In addition to the property acquisitions, unitholders will be asked to consider amendments to the REIT’s governing structure that would allow ownership of undivided interests in larger real estate assets. Another proposal involves a 10-for-1 unit consolidation expected during the first quarter of 2027, a move aimed at streamlining the REIT’s capital structure following growth in the number of units in issue.
The EGM is scheduled to be held virtually on 25 November 2026. While several regulatory and transaction-related conditions have already been met, completion of the acquisition remains subject to unitholder approval.
Tigere REIT says the acquisition aligns with its strategy of expanding a portfolio of high-quality, income-generating properties while maintaining sustainable growth. The fund also expects operational efficiencies and a broader investor base following the transaction.
