Stanlib Kenya has put on sale its real estate investment trust (Fahari I-Reit) pending approval by the regulators and concerned parties.
In a public notice dated November 7, the company said it has already entered into an agreement with ICEA Lion Asset Management to sell “certain assets” in connection with the I-Reit by February 29, 2020.
“Stanlib Kenya Limited (SKL) has informed The Co-operative Bank of Kenya Limited (as Trustee of the Reit) that SKL has entered into a sale of business agreement with ICEA LION Asset Management (ILAM).
The notice further said the agreement signed on Wednesday stipulates the assets to be acquired by ICEA to include Stanlib’s “investment management mandates and all rights, obligations and benefits of SKL in terms of, or in connection with, SKL’s role as promoter and Reit manager.”
However, the announcement co-authored with Cooperative Bank indicated that ICEA Lion will not take up any of Stanlib’s debts or any other liabilities.
“ILAM will not assume any of the debts or liabilities of SKL in connection with or relating to that business,” it said.
Stanlib said it would make another announcement in the future to confirm the completion of the transaction.
“A further announcement confirming the fulfillment of the conditions precedent and the implementation of the agreement will be made in future,” the firm said.
“The implementation of the agreement is subject to the fulfillment, by no later than 29 February 2020, of a number of conditions precedent set out in the agreement which include, but are not limited to, the approval of the Competition Authority of Kenya, the Capital Markets Authority of Kenya and the Trustee.”
The notice asked unit holders and the public to exercise caution when dealing in the securities of the Reit until further announcements are made.
Stanlib puts its Reit on sale when its assets under management run to more than Sh30 billion as at June 2018.
The acquisition is expected to propel ICEA Lion, whose asset management unit oversees funds worth over Sh120 billion, to be one of the country’s top money managers.