Nasidi Adamu Yahaya
2 October 2008
Union Homes Hybrid REIT has been rated double 'A' by rating giant (GCR) Global Credit Rating Company, a South Africa-based International Organisation, globally reputed for its accurate rating of industry performers world wide.
A statement from the office of the Union Homes AGM Corporate Affairs, Uche Onyeabo, said the rating followed a technically thorough analysis of Union Homes REIT objectives, partnerships, its functional strategies, profit propelling forces and an unbiased financial forecast of the innovation in the next five years,
The statement said the double 'A' rating depicts the strength and reliability of Union Homes REIT and these include provision of a sound guarantor and risk mitigants for the scheme and partnership with independent team of professionals.
Union Homes Savings and Loans Plc, the statement said, is the first primary mortgage institution to introduce a hybrid REIT to Nigeria and that the primary goal of Union Homes REIT is to create a well-diversified property portfolio that would provide attractive returns to investors. Investments, it said, primarily will focus on properties and mortgages in choice locations in Nigeria. This strategy is in view of Nigeria's housing needs estimated at 12 million units and valued at about N30 trillion for its 140 million population.
Union Homes Hybrid REIT, the statement added, will be capitalised with N50 billion through the issuance of 970.9 million units of N50 per unit, at a price of N51.50k per unit to investors. The units of Union Homes REIT will be fully tradeable on the Nigerian Stock Exchange, The Hybrid REIT will also operate as a closed-ended unit trust fund, governed by a Trust Deed and guaranteed up to N35 billion by Union Bank of Nigeria Plc.
Union Homes, entry into Real Estate Investment Trust (REIT) is based on its corporate tenet aimed at innovating new structures that would create affordable shelter for the citizenry. The institution's initiative with REIT is to take advantage of the potentials in the nation's property market, to open up a new vista of opportunities for economic growth to a wide array of investors.
The difference between Union Homes REIT and regular stock and shares include its tax efficiency, compulsory annual payment of 90% minimum of REIT earnings to investors and total transparency of its operations as statutorily required.
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