As Top Services presents ‘Facts Behind the Offer’ of N20bn REIT

Today, the management of Top Services Limited (TSL) will be at the Nigerian Stock Exchange (NSE) to present the ‘Facts Behind the Offer’ of its N20 billion Real Estate Investment Trust (REIT) to the investment community.

The Top Services Limited Real Estate Investment Trust (TSL REIT), currently open for subscription is an investment opportunity one should consider especially as investors seek avenues to diversify their investment and make good use of their funds beyond investing in the equities market.

The close-ended TSL REIT offer, consisting of 20 million units for subscription at N1, 000 per unit has First Ally Capital as its Lead Issuing House and First Ally Asset Management as its Fund Manager.
The TSL REIT which opened for subscription on February 1, 2017 is scheduled to last till March 10, 2017 and would be listed on the Nigerian stock Exchange on April 17, 2017.

Joint Issuing Houses are: Cowry Asset Management Limited, Futureview Financial Services Limited and Greenwich Trust Limited. The Trustee to the REIT is ARM Trustees Limited; while the Custodian is Stanbic IBTC Bank Plc (Custodial Services – Stanbic Nominees Limited).

Also, the solicitors to the Transaction are Udo Udoma & Belo-Osagie; Reporting Accountants is Pedabo Audit Services; the Registrars to the REIT is United Securities Limited while Stockbrokers to the Issue and Market Makers is FSDH Securities Limited.

The REIT aims to provide Investors with regular and stable income and sustainable long-term growth in dividend payment and Net Asset Value (NAV) per unit. The REIT also aims to invest in a portfolio of high-quality retail malls that are already generating income and money market instruments.

Having identified the need for well-located and affordable retail/mall spaces to help catalyze the growth of local retailers, Top Services Limited committed itself to building and delivering “neighbourhood” malls that are affordable yet of high quality to attract anchor tenants.

To date, TSL has developed four malls; Adeniran Ogunsanya Mall, Surulere, Apapa Mall, Apapa, Cocoa Mall, Dugbe, Ibadan, Oyo State and Akure Mall, Akure, Ondo State, all of which are currently operational and have occupancy rates of over 80%.
Tokunbo Omisore, chairman of Top Services Limited while speaking on the offer said initial investments by the REIT will focus on retail-related real estate including the highlighted four malls owned by TSL.

Promising stable and regular income distribution to investors in the REIT, Omisore disclosed that the malls can boast of diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period.

He listed the strengths of the TSL REIT to include predictable cash flow, multiple anchor tenants at each location with long term leases, rental payments agreements that are indexed to the NGN:US$ rate, zero leverage of assets at inception, while Investors will not take on development, construction or financing risk. In addition, the malls have high average occupancy rate as all the malls are at or above 80% occupancy levels.

Also, Winston Osuchukwu, Managing Director, First Ally Asset Management, Fund Manager for the TSL REIT said, “investing in the Top Services Limited Real Estate Investment Trust allows for diversification of investment portfolio thereby reducing portfolio risks.

“Let me assure investors that the REIT will be managed by professionals with great care, top skill, prudence and diligence. For instance, the Investment Committee consists of professionals of diverse skills and in depth knowledge in real estate investment and operations. In addition, the REIT is transparently structured and backed by reputable organizations including ARM Trustees Limited, Stanbic IBTC Bank Plc and Leadway Assurance Plc”, he said.

He appealed to institutional investors, particularly the Pension fund administrators (PFAs), to take advantage of the REIT and assured them that the REIT’s excess capital will be invested in upgrading existing facilities, government securities and real estate related investments to enhance the yield of the fund, among other projected income streams.

Both the TSL REIT and the Asset Manager have received investment grade ratings from Agusto & Co. the agency rated TSL REIT – “BBB” (Instrument Rating) and FAAM – “BBB+” (Manager Rating).