Old Mutual is preparing to list a Development REIT (D-REIT) on the Victoria Falls Stock Exchange (VFEX), aiming to raise US$46.2 million through a private placement ahead of the listing, according to Financial Express (@FinxZim).
The funds raised would go toward launching The Grange, a mixed-use property project that forms the centrepiece of the new vehicle’s investment case. The structure blends two distinct property strategies: greenfield development at The Grange itself, spanning lifestyle, medical and office space, and a stabilising layer of income-generating assets, anchored by the already operational Borrowdale Office Park, designed to offset the risks typically associated with ground-up construction.
A key feature of the offering is that it has already secured Prescribed Asset Status at fund level, a designation that Financial Express describes as a significant draw for institutional investors seeking compliant, hard-currency exposure. Prescribed Asset Status allows pension funds and other institutional investors in Zimbabwe to count their holdings toward regulatory requirements that mandate a portion of assets be held in designated, government-approved instruments — a status that can meaningfully widen the pool of local capital available to a fund.
The choice of the VFEX as a listing venue is also central to the strategy. As a US dollar-denominated exchange, the VFEX offers issuers and investors tax efficiency and easier capital mobility compared with Zimbabwe’s primary bourse, the Zimbabwe Stock Exchange, which trades in local currency. The exchange has grown steadily since its 2020 launch and now counts numerous listings across equities and other instrument types, including several real estate investment trusts.
Structuring the vehicle around both greenfield development and existing income-producing property is a common approach for D-REITs, which typically carry higher risk than standard income REITs given their exposure to construction and leasing risk during the build-out phase. Pairing that exposure with a stabilising asset like Borrowdale Office Park is intended to give investors a more predictable cash flow stream while the newer components of the portfolio are developed and brought to market.
If completed as outlined, the listing would add to a run of recent VFEX activity, with several Zimbabwean companies and property vehicles turning to the dollar-denominated exchange to attract institutional and foreign capital in a market where hard-currency instruments remain in high demand.
Old Mutual has not yet released further details on the fund’s structure, timeline for the private placement, or the specific terms of the prescribed asset designation. Further updates on the listing are expected as the offering progresses.
