Understanding Real Estate Investment Trusts (REITs) in Zimbabwe

A Real Estate Investment Trust (REIT) is duly registered Trust which is established by way of a Notarial Deed of Trust in terms of the Collective Investment Schemes (Internal Schemes) Regulations 1998 as read with the Collective Investment Schemes (Internal Schemes) (Amendment) Regulations, 2019 (No. 5).

A REIT is thus, an internal scheme regulated by the Securities and Exchange Commission of Zimbabwe (SECZIM) that owns, manages and or invests in real estate. There are different persons who govern a REIT. For instance, the Trustee of a REIT is the custodian of the documents of the REIT and represents the interests of the investors or unit holders.

A unit holder, is a registered holder of one or more REIT Units in the fund. A REIT Manager is one that is charged with managing the asset management functions related to the REIT and its property assets on behalf of the investors or unit holders.

It is not unusual, that the REIT Manager will function under an Advisory Board for the REIT which generally comprises of its Promoter, representatives of the investors in the fund and any independent experts identified by the REIT to oversee the funds governance and offer strategic advice to the REIT Manager.

REITs in Zimbabwe offer a matchless opportunity to investors, by giving them the chance to contribute towards building the country’s infrastructure through the acquisition and disposal of real estate in different parts of the country. Due to the high demand for quality commercial, industrial and retail property, REITs in Zimbabwe offer the people an opportunity to become investors and to share in the promotion of infrastructural development, but also to income as unit holders and or investors.