By Stanley James, Business Editor
The Zimbabwe Stock Exchange says it stands ready to welcome more companies on the market for the benefit of investors after the listing of Tigere Property fund Real Investment Trust units on the ZSE.
The listing becomes the sixth on the local bourse this year and has also been described as important in raising funds for the real estate sector.
Terrace Africa director, Mr. Brett Abrahmse said, “As the first to list we take attention on the fact that there has been an oversubscription to the offer which means that investors are more than willing to take part in the real estate sector.”
Regulatory authorities attribute the renewed confidence on capital markets to incentives introduced by the government.
“The incentives are also emerging as a key element that is unlocking viable returns to the extent that this is a positive step,” noted Mr. Anymore Taruvinga, chief executive officer of the Securities and Exchange Commission of Zimbabwe.
Government is excited about the current state of capital markets.
“There is that state of confidence which is coming to the market and we hope that in the future it will enable the capital markets to further get more confidence,” said Finance and Economic Development minister, Professor Mthuli.
Real Investment Trust (REIT) units facilitate mobilisation of funds for investment in real estate or properties sector.
In exchange the investor gets units in the trust which enables them to receive part of their share from real estate asset profits.