A Real Estate Investment Trust (REIT) is a collective/pooled investment scheme which owns and operates income generating real estate assets. Unlike a property company, REITs are not taxed (exempted in terms of Section 17 of the Finance Act (No.2) of 2020), but are compelled to distribute at least 80% of their taxable income to investors as dividends. A REIT usually has a sponsor who seeds initial property assets into the Fund; other investors can inject cash for either the development of the properties or further acquisitions.
The investment thesis of the REVITUS REIT is to acquire “distressed” commercial properties in prime locations at a discount to their gross replacement values; repurposes them into modern green buildings with enhanced economics – enhanced rental yields and market values. The properties must be currently used for commercial use, titled, selling at a discount, and with turnaround potential. Currently the REVITUS REIT is seeded with five properties (in Harare and Bulawayo) by the promoter National Railways Contributory Pension Fund (NRZCPF). These will undergo phased repurposing and renovation (revitalisation) over a 3-year period. The first property will be repurposed in 2024 into long stay hotel apartments. The current capital raise is to fund such developments.
Beyond 2026, after the initial 5 properties are repurposed and revitalised, the REVITUS REIT will continue to identify and acquire “distressed” properties (or invite other pension funds with similar properties to seed them into the REIT in exchange for units) and repurposes them to enhance their economic value. As the REIT acquires and revitalises properties, the Net Asset Value of the REIT increases and the aggregate rentals as well.
A “distressed” property is a real estate asset that is in performing significantly below targeted expectations for a prolonged period due to one or more reasons which include: substandard or outdated physical condition, low quality tenants, low demand due to shift in tastes of the target market. “Distressed” properties are not necessarily physically dilapidated buildings, but also physically stable properties whose financial performance and valuations are depressed due to voids, low collections and weak covenants. Therefore, a change of model (through repurposing) can potentially improve occupants, collections (through an Operator), and rental yields resulting in improved property value.
Net Asset Value (NAV) represents the investment value of the Fund. It is the difference between the total assets (the buildings plus any cash) of the Fund and total liabilities (any borrowings plus maintenance and other expenditure owed to providers). The NAV per unit is calculated as Net Asset Value divided by the total number of units outstanding (issued). The Net Asset Value of the Fund shows the valuation of the REIT from time to time, and is determined on a quarterly basis by the REIT/Fund Manager. The trading price of the REIT on the ZSE will primarily track the NAV per unit of the REIT. However, there will be deviations between the market price on ZSE and the NAV (per unit) due to market forces i.e. demand and supply dynamics.
An investment in the REVITUS REIT presents investors with an opportunity to earn regular dividend income (from the rental income earned) and to also enjoy potential capital appreciation (from improved valuations of properties held in the Fund). The REVITUS REIT is required to distribute at least 80% of its net taxable income to investors and this will be done on a quarterly basis in the form of a dividend. Investors who subscribe during the IPO have an opportunity to earn significant capital gains through higher market capitalisation of the Fund on the back of a higher NAV driven by revaluations of the renovated and repurposed properties. Improved rental performance of the properties will translate into higher rental and dividend yields.

The NRZCPF is the Promoter (Sponsor) of the REVITUS REIT whose initial assets are the five(5) properties seeded into the REIT by the pension fund. These properties are now wholly owned by the REVITUS REIT with the pension fund getting units in the REIT in return for its assets. With (other) new investors acquiring units of the REIT during the IPO window, the NRZCPF together with these other investors become mere unitholders in the REIT upon listing. The Promoter has no direct control of the REIT as the day to day operations are carried out by the REIT Manager, with the Advisory Board responsible for all the strategic advisory and oversight. Thus, apart from being a Unitholder, the Promoter is not involved in the operations of the REIT.

In terms of Section 17 of the Finance Act (No.2) of 2020; qualifying requirements for tax exemption status to REITs, the REIT is required to distribute at least 80% of its taxable income as dividends to REIT investors. On the USD denominated Victoria Falls Stock Exchange (“VFEX”), all dividend distributions are made in USD (trading currency). This therefore means that for the REIT to list on VFEX, more than 80% of its rental income should be in USD. This is not guaranteed since the property operators accepts rental payments in both USD and ZWL currencies, making a ZSE (ZWL denominated) listing more feasible. It is however important to note that dividend distributions will be made in the currency the rentals are received in. Investors can therefore expect a dividend comprised of both USD and ZWL, in the same proportions in which they are earned by the REIT.
The Investment into the REIT is open to all eligible investors – local, foreign, retail and institutional investors, provided they are able to provide the KYC requirements prescribed in the Subscription Form.
The REVITUS Investment model is designed to generate superior returns to investors through capital appreciation and enhanced rental income. Investors invest into the REIT at a discounted NAV (market value of the initial properties is undervalued) and stand to potentially enjoy significant capital uplift when revitalised properties are revalued. The REIT target brownfield investments which potentially reduces development risk. REVITUS also provides small institutional and retail investors an opportunity to partially own real estate assets, which used to be the preserve of large institutional and high net worth individuals. The flexibility to partially invest and disinvest adds liquidity makes the underlying illiquid property assets liquid. Other benefits include Prescribed Asset Status for Insurance and Pension Funds; pure flow of yield to investors especially without the double taxation layers present in property companies; diversification into a relatively low risk property linked liquid investment.
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REVITUS Real Estate Investment Trust provides you with an opportunity to build a more diversified portfolio of income generating properties, acquired at a discount and revitalised to generate higher rental income.

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CBZ Wealth Management Centre
Corner Edinburgh/ Campbell Road
Pomona, Borrowdale, Harare
PO Box HG 480 Highlands, Harare

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