, NAIROBI, Kenya, Dec 8 – UK property firm St Paul’s Property Trust Plc has pushed its listing on the Nairobi Securities Exchange (NSE) to early next year.
The firm which will be the second real estate company to list on the NSE attributed the decision to volatility seen in the equity markets and interest rates.
The firm had planned to list this month.
St Paul’s Property Trust Plc Chairperson Patrick Walker says the current atmosphere, of unsteady equity markets and particularly volatile interest rates, would not be conducive to an immediate listing.
Walker said the firm will be coming to the market in the New Year as a full Initial Public Offer (IPO) rather than the originally planned more narrow placement.
“Feedback has suggested that our proposal is particularly attractive to a wider market and internationally, in that it provides investors with the opportunity to invest in a risk-averse, sterling based property investment asset providing a progressive return on capital with an in-built hedge against currency fluctuation.”
“Many institutional and high net worth investors have indicated the proposal meets their need for a stable and progressive tax free dividend return and we, therefore, need to widen the offer,” he said.
The company has already had high-level meetings with the regulatory authorities regarding the improved structure.
The proceeds of the IPO will be invested immediately into identified properties that fit the secure investment model proposed.
The firm mainly invests in prime properties outside central London whose main tenant is the government and related agencies.
This will give Kenyan investors exposure to the UK property market and the highly stable commercial let-to-government sector.