Published: 08 May 2025

Eagle Real Estate Investment Trust (Eagle REIT) is set to make its debut on the Victoria Falls Stock Exchange (VFEX) next Thursday, listing approximately 137.6 million existing units through a listing by introduction. The move will allow current unit holders to trade their shares publicly, opening a new investment channel in Zimbabwe's property sector.

The listing marks a significant step in Eagle REIT's ambition to become a leading real estate investment platform in Zimbabwe, with a strategic focus on sectors considered resilient - including tourism, healthcare, residential housing, and retail spaces.

According to the pre-listing statement released Tuesday, the fund aims to generate long-term, risk-adjusted returns for investors by developing, owning, managing and investing in high-quality property assets. All trading will be conducted exclusively in US dollars, leveraging VFEX's foreign currency platform to provide a buffer against Zimbabwe's historical economic volatility.

"Over the last two and a half decades, Zimbabwe has been gripped by episodes of hyperinflation, currency depreciation and changes that led to investors losing value on monetary assets," the statement said. "Property proved to be a hedge against inflation as prices generally moved in line with exchange rate movements. With the underlying assets being property, the fund seeks to preserve capital for investors."

Managed by Fidelity Life Asset Management Company, Eagle REIT plans to distribute at least 80% of its taxable income as dividends, offering a consistent income stream to investors. The REIT structure also provides tax efficiency, with income exempt from tax as long as regulatory compliance is maintained under the Securities and Exchange Commission of Zimbabwe (SECZ) and registration with Zimra is upheld.

The listing will enable secondary market trading of Eagle REIT units at market-driven prices, providing liquidity and greater accessibility for both retail and institutional investors.

The fund targets returns from both rental income and development profits, which are expected to range between 15% and 25% of project costs. It emphasizes building new properties in strategic locations to maximise returns and maintain control over project costs.

For institutional investors such as pension funds, Eagle REIT presents added value as a prescribed asset, which helps meet regulatory investment requirements while offering portfolio diversification. Its US dollar denomination also makes it an appealing hedge against local currency instability.

CBZ Bank will serve as trustee, with Fidelity Life Assurance of Zimbabwe Limited and Zimre Holdings Limited (ZHL) as anchor investors. An advisory board comprising representatives from anchor investors, independent professionals, and investment committees from ZHL will provide oversight, ensuring transparency and sound governance.

As of December 31, 2024, Eagle REIT had total assets worth US$23.8 million and a net asset value of US$20 million.

However, the pre-listing statement cautions potential investors to assess risks such as currency fluctuations, liquidity, market volatility, portfolio vacancies, and possible cost overruns in development projects.

Eagle REIT's listing adds momentum to the VFEX's broader goal of attracting high-quality investment instruments and improving market depth through diversified, USD-based assets — reinforcing Victoria Falls' role as Zimbabwe's emerging financial hub.
- the herald