All is set for the Initial Public Offer of UACN Property Development Company Plc’s Real Estate Investment Trust, which will kick off on February 19, 2013.

The REIT seeks to raise N30bn by way of IPO of 3,000,000,000 units of N10 each at par.

The offer document was signed by all the professional parties to the IPO during the completion board meeting held in Lagos on Tuesday, having received the necessary approvals from the Securities and Exchange Commission and the Nigerian Stock Exchange.

According to the document, the REIT will invest primarily in a diversified portfolio of quality residential and commercial real estate property in Nigeria.

Its principal targeted assets are investments in properties in prime locations within Lagos, Abuja and other major cities in the country.

Speaking at the meeting, the Chairman, UPDC, Mr. Larry Ettah, said the offer was timely and expressed confidence that the REIT would be fully embraced by both local and foreign investors.

He said funds raised from the IPO would be used to consolidate on the company’s activities and unlock more value-generating business for the company in the next few years.

Ettah said, “We believe that this is the right time to come into the market; of course, things have been looking up in the market and it is wise for us to come in at this time. The company is looking at some huge projects at this time, and we will use these funds to actualise the projects.

“We have projects in Abuja, Lagos, and all these are existing assets. Of course, investors know that UPDC is a company that has been around for a long time; so, we are confident that they will subscribe to the offer. Also, it is important to note that this offer presents an opportunity for investors, who are looking to diversify their portfolio from the normal bonds and equities on the NSE; so, we are sure of high level of patronage.”

The Managing Director, UPDC, Mr. Hakeem Ogunniran, said investors in the REIT were expected to enjoy benefits, including immediate investment income, stable and regular distribution and exposure to a diversified property portfolio of income generating assets.

He added that the target investors for the offer, which opens on February 19, and closes on March 28, 2013, are insurance companies, pension funds, assets/fund managers, cooperatives investment clubs as well as high net worth retail investors.

The fund manager of the offer is FSDH Asset Management Limited, while the lead and co-issuing houses are Stanbic IBTC Bank Plc and BGL Plc.

Source: Punch (written by Udeme Ekwere)