UPDC REIT

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UPDC REIT is a close-ended property fund with underlying assets comprising a diversified portfolio of commercial and residential real estate assets in major cities across Nigeria.

The UPDC REIT unbundling Initiative:

  • Another initiative, aimed at unlocking value for UPDC shareholders and enabling UPDC focus on core operations, is the proposed unbundling of a substantial portion of UPDC’s units in UPDC Real Estate Investment Trust (“UPDC REIT” or the “REIT”) (the “Unbundling”)
  • Requisite regulatory approvals have been received and the Court-Ordered Meeting (“COM”) for shareholders to approve the Unbundling was held on 26 October 2020

The Unbundling will benefit UPDC shareholders:

  1. Direct exposure to the REIT and its diversified portfolio of income generating assets, ensuring that shareholders directly benefit from the dividend of the REIT
  2. The Unbundling is expected to materially increase the free float and liquidity in UPDC REIT units.
  3. Streamlined and focused operations for both UPDC and the UPDC REIT
  4. Provides UPDC with more operational and financial flexibility to embark on the next phase of growth and take advantage of emerging opportunities

The unbundling is to be implemented via a Scheme of Arrangement under Section 715 of CAMA incorporating a reduction in share capital under Section 131 of CAMA:

  • UPDC REIT units will be allocated to all UPDC shareholders based on the respective shareholding in UPDC at the time of the unbundling
  • UPDC will maintain a 5% holding in UPDC REIT to maintain its role as the REIT Sponsor
  • UPDC’s share capital will be reduced by the value of the transferred units through the reduction of its share premium account
  • The number of REIT units each Eligible Shareholder shall be entitled to receive will be calculated by multiplying the number of UPDC shares held by each Eligible Shareholder by the Allocation Ratio

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Confirmation/Acknowledgements:

  • No guarantee of availability of property until payment received in full
  • Buyer is responsible for payment of fees to any agent engaged by Buyer
  • Buyer shall make and rely upon its own inquiries and shall satisfy itself in all respects in relation to the title and property conditions
  • Payment for the property shall be made only to UPDC’s designated account. UPDC has not authorized any agent to collect payment on its behalf.

  • START
  • FILL YOUR DETAIL
  • CONFIRMATION

Confirmation/Acknowledgements:

  • No guarantee of availability of property until payment received in full
  • Buyer is responsible for payment of fees to any agent engaged by Buyer
  • Buyer shall make and rely upon its own inquiries and shall satisfy itself in all respects in relation to the title and property conditions
  • Payment for the property shall be made only to UPDC’s designated account. UPDC has not authorized any agent to collect payment on its behalf.
  • In the unlikely event that UPDC does not commence the development within 12 months of receipt of the holding deposit, the holding deposit will be refunded to the buyer.