ICEA Lion Asset Management has taken over the management of Stanlib Fahari I-Reit, a listed property fund in a deal that will see it acquire its former administrator Stanlib Kenya.
Stanlib does asset management and running of the property fund and ICEA Lion will now take over all these operations.
Liberty Holdings which is a South Africa-based insurer sold Stanlib to ICEA so that they can focus more on profit generating subsidiaries when the take over completes in august.
ICEA, owned by the Philip Ndegwa family has assumed all the Stanlib’s operations including management of Fahari, signalling certainty of deal closure.
The parties are now pleased to announce that all the conditions precedent in relation to the transfer of the management of the Reit … have been fulfilled, with the result that such transfer became effective on 18 May 2020 and has been implemented,” ICEA and Stanlib said in a joint statement.
ICEA is now responsible for management and promotion of the Reit, a real estate investment scheme which owns and manages income generating real estate on behalf of its investors. It provides an instrument for investing in the real estate market which offers both liquidity and a stable income stream.
Stanlib earned upto Sh70 million last year for managing the property fund. The figure was down from Sh76.5 million in 2019 but still remains a good pointer to the kind of money ICEA will also earn for running the Reit.