Gaia lists South Africa’s first specialist fibre optic real estate investment trust
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Gaia lists South Africa’s first specialist fiber optic real estate mutual fund
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Gaia Fund Managers, Fibonacci Managers and Kruger International Asset & Wealth Management have announced the listing of South Africa’s first specialist real estate investment trust (REIT) investing in fiber optic network infrastructure on the Cape Town Stock Exchange (CTSE, formerly 4AX).
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Gaia Fund Managers, Fibonacci Managers and Kruger International Asset & Wealth Management have announced the listing of South Africa’s first specialist real estate investment trust (REIT) investing in fiber optic network infrastructure on the Cape Town Stock Exchange (CTSE, formerly 4AX).
According to Denzil Kennon (pictured), Chief Operating Officer of Gaia Fund Managers, the REIT provides a tax-efficient structure through which investors generate returns on investments in exclusive fiber optic networks that provide data access to a growing number of end users.
“Gaia has a track record of providing novel solutions to provide investors with access to inflation-linked returns by investing in infrastructure,” he said.
The listing of the Gaia Fibonacci Fiber REIT 1 on December 10, 2021 comes at a time when the South African government is calling on private investors to support the large-scale expansion of the infrastructure in order to stimulate economic growth.
Fiber optic cable networks fit seamlessly into this infrastructure as they connect South Africans and their companies to the increasingly digital world.
Essentially, these fiber optic networks improve the ability of individuals and businesses to participate and grow in the digital economy.
In addition, it provides access to internet services for households, schools and businesses, which is a key component in promoting education and reducing inequalities and thus contributes directly to the UN Sustainable Development Goals.
This is the second listing of an infrastructure-related fund on Gaia’s Cape Town Stock Exchange.
In October 2020, the fund manager listed preferred shares for Gaia Renewables 1.
The latter hosts investments in renewable energy infrastructure such as the Tsitsikamma Community Wind Farm near Humansdorp in the Eastern Cape. The preferred shares were purchased by the Kruger Ci Prudential Fund, Kruger Ci Balanced Fund and Kruger Ci Equity Fund and provided Kruger customers with a unique, safe, regulated and tax efficient way to invest in an operational wind farm.
“Gaia Renewables 1 offers investors the opportunity to get exposure to alternative investments in the form of renewable energy infrastructure,” said Kennon.
“Gaia, together with Fibonacci Managers and Kruger International Asset & Wealth Management, built on this success by using a similar structure and giving investors access to South Africa’s first fiber-optic network REIT,” he added.
The REIT offers shareholders the same tax benefits as if they owned the underlying assets directly with no corporate income tax, while dividends are taxed in the hands of the shareholders.
Hein Kruger, Managing Director of Kruger International, said, “We are proud to once again offer the market a new and unique investment opportunity with strong returns. Through the Kruger Funds, our clients will be the first investors in South Africa to hold shares in a publicly traded REIT that invests in fiber optic network infrastructure. This investment not only represents a solid diversification into an alternative asset class in a safe, regulated and tax efficient manner, but also contributes to much-needed infrastructure development in South Africa. “
Eugene Booysen, CEO of the Cape Town Stock Exchange added, “The CTSE is serious about real economic transformation and raising capital into the hands of entrepreneurs to create jobs and grow the economy. We work with our issuers and investors to change the market perception of listings. The Gaia Fiber REIT is committed to financial innovation and facilitates technology and infrastructure investments. “