Centum Investment Company, a leading investment firm in East Africa, is set to introduce Kenya’s first dollar-denominated income Real Estate Investment Trust (I-Reit) at the Two Rivers Special Economic Zone.
This initiative aims to provide investors with an alternative to the traditional shilling-based investment options, offering a new avenue for portfolio diversification.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate.
REITs provide investors with a way to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves.
By denIominating the I-Reit in U.S. dollars, Centum seeks to attract investors who are looking to hedge against currency risks associated with the Kenyan shilling.
The Two Rivers Special Economic Zone, where the I-Reit will be launched, is a significant development in Kenya’s real estate field.
Spanning 102 acres, this mixed-use development includes retail, residential, and office spaces, positioning itself as a premier destination for business and leisure.
Centum’s decision to base the I-Reit in this location underscores the strategic importance of the area and its potential for high returns on investment.
Investors in Kenya have traditionally been limited to shilling-denominated investment products, which can be susceptible to local economic fluctuations and currency depreciation.
By offering a dollar-denominated I-Reit, Centum provides a safeguard against such risks, appealing to both local and international investors seeking more stable and predictable returns.
This move aligns with global investment trends where diversification into foreign-denominated assets is seen as a prudent strategy to mitigate currency risk.
Centum Investment Company has a diversified portfolio with interests in various sectors, including real estate, financial services, and energy.
Their real estate ventures are notable, with significant projects like the Two Rivers Development and Vipingo Development under their belt.
The introduction of the dollar-denominated I-Reit is a testament to Centum’s innovative approach and commitment to providing diverse investment opportunities in the region.
The launch of this I-Reit is expected to have several positive implications for Kenya’s financial and real estate sectors.
It could attract foreign direct investment, enhance the sophistication of the local capital markets, and set a precedent for similar financial instruments in the future.
Moreover, it offers investors an opportunity to participate in the growth of Kenya’s real estate market while mitigating the risks associated with currency volatility.
Centum Investment Company’s plan to launch Kenya’s first dollar-denominated income Real Estate Investment Trust at the Two Rivers Special Economic Zone marks a significant milestone in the country’s investment landscape.
It provides investors with a new tool for diversification and risk management, reflecting Centum’s role as a pioneer in introducing innovative financial products to the East African market.
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